Question

Consider the following statements with reference to PPP (Public Private Partnership) model : Which of the given statements is/are not correct?

1. It is an arrangement between the government and private sector for the provision of public assets and also includes Public Services
2. In such a type of arrangement, the risk is entirely shared by the Private entity.

• A. 1 only
• B. 2 only
• C. Both 1 and 2
• D. Neither 1 nor 2

Answer 1

Answer:

B. 2 only

Public-Private Partnership (PPP)

• It is a collaborative arrangement between the public sector (typically government or a government-owned entity) and the private sector, where both parties work together to provide public infrastructure, services, or assets.
• PPPs are used to mobilize private sector resources and expertise to deliver public projects or services efficiently, while sharing risks and responsibilities.
• In a Public-Private Partnership (PPP), the risk is not entirely borne by the private entity.
• PPPs are designed in a way that risks and rewards are shared between the public and private sectors involved.
• This risk-sharing mechanism is one of the key aspects of a successful PPP model.
• Common examples of PPP projects include the construction and operation of infrastructure like roads, bridges, airports, water treatment plants, and hospitals, as well as the provision of services like public transportation and waste management.