References to PPPs are wide-ranging and ambiguous, with little precision in how the term is used. Some consider a partnership simply a term used to describe relationships between any contracting parties, whereas others interpret it as an advancement on or alternative to "contracting out" (Wettenhall 2003). Grimsey and Lewis (2005) consider whether PPPs are a form of privatization and assert they are not, because with privatization, the government no longer has a direct role in ongoing operations, whereas with a PPP the government retains ultimate responsibility. Leavitt and Morris (2007) suggest partnerships encompass a continuous range of public/private mixes. At one end of the continuum the government agency provides for and produces products or services. At the other extreme the government completely divests all responsibility for products or services. A partnership is any arrangement that exists between these two extremes. The FTA specifies that a PPP is essentially a form of innovative procurement in which private capital is invested, and not an innovative finance tool such as "joint development" or "transit oriented development" deals that are typical of transit projects and that provide additional capital and operating revenues (FTA 2007).
The U.S.DOT's Report to Congress on Public-Private Partnerships (U.S.DOT 2004) defines a PPP as:
A public-private partnership is a contractual agreement formed between public and private sector partners, which allow more private sector participation than is traditional. The agreements usually involve a government agency contracting with a private company to renovate, construct, operate, maintain, and/or manage a facility or system. While the public sector usually retains ownership in the facility or system, the private party will be given additional decision rights in determining how the project or task will be completed.
This definition is widely adopted across the PPP literature (Jeffers et al. 2006; AECOM 2007b) as related to transportation PPP, and we continue to use that definition in this synthesis.
Opinion/Comment from "Other Individuals/Interest Groups" Survey: PPPs range from concessions to construction contracting methods. It is very important to differentiate between the various types of PPPs in use rather than lumping them all together. The public accountability varies significantly from type to type. |