QUESTIONS ON P3s

Why should governments turn to the private-sector to help perform services they have traditionally handled themselves?
Actually, public-private partnerships have been in existence since long in other developed countries of the world, but in Nigeria, PPPs are seen and heard of in more recent time. In today's world, creative government leaders develop partnerships with private contractors to provide essential services to meet environmental compliance requirements and improve operations, without having to increase taxes upon their constituencies. Also, governments realize that the combined capital and intellectual resources of the public- and private-sectors can result in better, more efficient services.

Aren't private companies less accountable than governments to the public?
Actually, private companies involved in public-private partnerships have a very high level of public accountability. They must answer to the government agencies that hire them, to various regulators, to the Securities and Exchange Commission, etc and, in very visible partnerships, to the media. A private contractor that hopes to succeed and establish a reputation for quality service must be accountable to its government partners and to the public at large.

Don't private companies take short cuts in providing services in order to increase profits?
The reason governments are increasing their participation in partnerships with private contractors is because their constituencies approve of the high quality of services being provided without a commensurate increase in taxes. By reducing the quality of service, a company can reduce the possibility of repeat and/or new business. The profits made by the private-sector in these partnerships come from increased efficiencies, economies of scale and long-term financing that may not be available to the pubic-sector, and not from cuts in the quality of service.

Will the need for public-private partnerships increase, or will we see fewer of them as the economy improves and governments become less revenue-strapped?
First, public infrastructure and service needs far exceed the capability of government budgets to meet them. This is true in virtually every area of public life, from highways to waterworks. Public-private partnerships enhance the resources and the capability to address pressing public needs.

Second, public-private partnerships aren't just about budgetary issues. Governments are turning to partnerships because they see that merging the resources of the public- and private-sectors makes it possible to improve the quality of services provided to citizenries. So, public-private partnerships are expected to increase even do the economy improves and governments become less revenue-strapped.