Rhetoric and Reality of Public–Private Partnerships: Learning Points from the Australian Experience

다국어 초록 (Multilingual Abstract)

While publicprivate partnerships (PPPs) have lately come to be seen as an attractivevehicle to deliver public services, in academic circles, opinions remain divided about theirimpacts and performance. While the proponents strongly justify PPPs by citing a range ofbenefits, including enhanced efficiency, cost savings, risk transfer, and value for money,the critics tend to dismiss such assertions and label PPPs as risky and wasteful venturesthat eventually lead to much higher costs. Thus, PPPs have been the source of an intensedebate and controversy. This article is a contribution to this debate. Based on a review oftwo leading PPP projects in Australia, it argues that although PPPs may help achievesome short-term objectives, their overall performance falls short of expectations anddeclared objectives. The article shows that the benefits of PPPs are often exaggerated, thatthe projected risk transfer is incomplete or unrealistic given the long term nature ofprojects, and that the contract documents governing the relationships between parties areunable to capture all risks and uncertainties. Finally, it argues that there is a need toaugment capacity and skills on both sides, and to undertake a far more careful andconsidered assessment of the costs, benefits and risks of PPPs.

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