Objective

decision analysis partners delivered a study of Public/Private Partnerships (PPPs) use, models and trends for an undisclosed client.  The project was designed to help the client determine the extent to which PPPs would be useful to its organization.  The study examines the predominant PPP models and the circumstances in which each model is most successful and appropriate. The project tasks include:

• Developing a taxonomy of PPP models based on the review of partnerships established at U.S. and international government agencies,
• Classifying  the PPP models based on key criteria including financial/risk sharing, program oversight, revenue models, operational responsibilities and project transfer
• Developing case studies to discuss their applicability to the client organization during a facilitated workshop
• Develop a roadmap for the use of PPPs at the client organization
• Write a detailed report including thorough research notes to summarize all findings and recommendations.

Classification of Partnerships

For practitioners, the study provided a classification of  PPP models that would meet the following business goals :

• Cost avoidance — reduce the need for public capital investment by transferring in full or in part project financing to the private sector.
• Cost efficiency and improved service quality — building on the assumption that the private sector will perform certain tasks more efficiently and effectively than public agencies usually do.
• Accelerated development and  introduction of product and process innovations.
• Development of new growth engines through diversification — serve new customer needs or  customers segments.