Rethinking the public-private partnership model

LUCAS STOCK INDEX The Lucas Stock Index (LSI) remained unchanged during the third trading period of September 2015. The stocks of one company Banks DIH (DIH) were traded with 198,520 shares changing hands. There were no Climbers and no Tumblers.

Controversy

The experience with the Berbice River Bridge and its relationship with the investment made by the government seem to make people leery about using the public-private partnership investment model in the construction of projects in the future. Indeed, it is amazing that the public-private partnership model, an instrument for bringing public business pageinterests and private money together, could generate more controversy than cooperation as is the case with the Berbice River Bridge. The model seemed also to be what was planned for the Marriott hotel and the Amaila Falls hydropower complex. There is a fear the controversy surrounding the toll for using the Berbice River Bridge might diminish the availability of the public-private partnership as an investment option in future projects in Guyana. One must ask the question, should one bad apple be allowed to spoil the barrel? In previous columns, this writer has shared the reasons governments use the public-private partnership. What has not been done before is to identify the many forms that the public-private partnership can take and the impact each has on the public interest. This article essentially tries to identify and discuss the major forms of the public-private partnership or the P3, as it is often referred to in publications.

 

Policy goals

The P3 is thought to be driven by governments because they are the ones that come up with the policy goals to be met from public projects. The idea of the project usually starts with public officials who seek to achieve policy goals that are intended to serve the public at large. These are