Types Of Public-Private Partnership Agreements

The State retains ownership of assets and capital expenditure is the responsibility of the public sector, while operation and maintenance is borne by the private sector. These types of contracts have a duration of 3 to 5 years. The contract is awarded to a private partner to design and build a facility or infrastructure providing the performance specification in the PPP contract. This type of partnership can reduce time, save money, offer stronger guarantees (given that the work is done with a single entity and not with a consortium) and assign additional project risk to the private sector In case of P3 operation and maintenance, the private component of the partnership operates and maintains the project, while the public body owns the project. Bridges and toll roads are examples. Ongoing maintenance work may generate revenue to the private party through tolls or other fees paid by public use. Law of the Republic of Kazakhstan on Public-Private Partnerships (2015). Https://online.zakon.kz/Document/?doc_id=34299090#activate_doc=2 In the economies of a number of developed and developing countries, a particular form of interaction between the economy and the Government has emerged; a public-private partnership (PPP) (Hoeppner & Gerstlberger, 2003). The PPP is an institutional and organizational alliance between the power of the state and the private sector with the aim of implementing projects of social importance in a wide range of areas ranging from the development of strategic economic sectors to the provision of public services throughout the country or in certain territories (Osborne, 2000). The rapid development of multiple forms of PPPs in all regions of the world and their wide diffusion in different economic sectors make it possible to interpret this form of interaction between the state and the economy as characteristic of the modern economy (Tolstolesova et al., 2019; Martynova et al., 2019). PPPs and concessions are two types of agreements well defined by code-based laws, such as those in force in France. Throughout history, governments have undertaken such a mix of public and private efforts. [15] [16] Muhammad Ali of Egypt used ”concessions” in the early 1800s to obtain public works at minimal cost, while concessionaire companies made most of the profits from projects such as railways and dams.

[17] Much of the first infrastructure in the United States was built through public-private partnerships. . . .