The role of Public-private partnerships in the Managment and Operation of Infrastructure Assets
- Juan Camilo Valdes
- Jun 3, 2020
- 1 min read
The public-private-partnership (PPPs) contracts are a contracting model that allows
dividing or in some cases to transfer the financial risk due to the conceptualization of a Project
against the real executed and its maintenance and operation costs. Besides that, it is a mechanism
in developing countries that allows financing the infrastructure projects, crucial for the
competitiveness of the country with the money of the public sector.
The different contracting models within the PPPs allow the private sector to compete for contracts,
leading them to seek and innovate in the search for more competitive prices, which allows better
maintenance of the assets at a lower cost, with new technology an innovation; Something that
usually for the public sector is not possible.
PPP contracts not only provide the public sector with advantages such as financial risk transfer
but also competitive prices, maintenance, and operation of the highest quality with innovative
techniques implementing asset management, offering the possibility of enjoying high
specification assets, safe and of better quality for the users.
Keywords: Public Private Partnerships, Contractual Modalities in public private partnerships;
Private and Public Capital, PPPs, Maintenance and Operation in PPPs, Maintenance
Concessionary, Operation Cost Concessionary, Maintenance and operation cost in Public private
partnerships, Infrastructure PPPs, Infrastructure cost operation and maintenance.
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