A public private partnership may not be the best option for delivering a public service or project. Local government should undertake a cautious approach and examine all relevant factors and issues when considering this type of arrangement. The different forms of public private partnership vary in terms of how risks and responsibilities are allocated. They also vary in complexity and the degree of expertise required to successfully negotiate required contracts.
Local governments should not assume that public private partnerships provide easy outs to difficult servicing issues. They should expect that increased transfer of risk will result in higher expectations for reward by the private sector and that the negotiation of contracts may require a high degree of expertise. The following discussion provides an overview of some of the potential benefits and risks associated with public private partnerships.