Setting up public and private partnership contracts (PPP)

Setting up public and private partnership contracts (PPP
Public-private partnership Public-Private Partnership (PPP) is a mechanism by which governments, in cooperation with private sector companies, expand the infrastructure needed to provide services to the public. The important advantage of this method is to preserve the interests of both sides of the cooperation, that is, the public sector and the private sector. For example, while governments are facing the problem of limited revenue sources in order to be able to develop infrastructures in line with population growth, by using this method, by handing over the construction and operation of infrastructures to the private sector, this sector can benefit from appropriate profits and at the same time It also provided the infrastructure services needed by the government. Also, in this method, due to the existence of a suitable mechanism for the cooperation of the government and the private sector and the absence of the structure of the employer and the contractor, the party that can manage the risk well accepts the risk of the project, and in this way, with the increase in efficiency, the costs are reduced. There is no consensus on how to define a public-private partnership (PPP). This sector can cover hundreds of different types of long-term contracts with a wide range of risk allocations, funding arrangements and transparency requirements. The development of PPPs, as a concept and a practice, is a product of the new public management of the late ۲۰th century and the pressures of globalization. For example, the OECD formally defines public-private partnerships as “long-term contractual arrangements between the government and a private partner whereby the government provides public services using a capital asset and shares its financial resources”.  
Historical roots of public-private partnership (PPP) Governments have historically used such a combination of public and private efforts. For example, much of the basic infrastructure of the United States was built by what could be considered public-private partnerships. These infrastructures include the Philadelphia Road in Pennsylvania in ۱۷۹۲, a fleeting steamboat line between New York and New Jersey in ۱۸۰۸, and many of the railroads of the American state of New Jersey in ۱۸۱۵. In the early ۲۱st century, the use of various types of PPPs by governments around the world was on the rise, but this trend seems to have reversed after the ۲۰۰۸ global financial crisis.  
Public-private partnership in Iran
  The public-private partnership model has a long history in Iran. The beginning of the activity of this model can be seriously considered from the approval of “Part ۱, Clause D, Note ۱۹ of the Budget Law of ۲۰۱۶”, in which the country’s program and budget organization was obliged to create an infrastructure to improve the management of projects and change from traditional patterns. It should be provided with new methods like this “public-private partnership” model. Public-private partnership can be seen as a model for financing infrastructural projects, infrastructure and capital asset acquisition plans. Paying special attention to public-private partnership contracts and smoothing the transfer process is one of the basic and primary measures that should be addressed. Global experience indicates that advanced and developing countries have been able to implement their goals for managing, educating and attracting investors through a special website under the title of public-private partnership. from the executive bodies at the macro level of the Islamic Republic of Iran, which for the first time took an executive step in explaining this model for carrying out national projects; The Ministry of Jihad was Agriculture.  
Public-private partnership in Iran A key aspect of many infrastructure ۳Ps is that the majority of the project’s upfront funding is paid by the private sector. How to do this financing varies from country to country. For ۳Ps in the UK, bonds are used instead of bank loans. In Canada, ۳P projects typically use loans that must be repaid within ۵ years.  
Delivery models There are different types and different delivery models of PPPs, some of which are:

  • operation-maintenance contract (OM)
  • Build-Finance (BF)
  • Build-Operate-Transfer (BOT)
  • Build-Own-Operate-Transfer (BOOT)
  • Build-Lease-Transfer (BLT)
  • Design-build-finance-maintenance (DBFM)
  • Design-Construction-Management-Financing (DCMF)

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