| Respondent #21 |
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| Type of Organization
| i. Interest Groups (Please specify in question 3a) Environmental |
| Top benefits of PPP | If a government has reached a debt limit, it may be a way to finance a public works project. |
| PPP Concern 1 | The private corporation negotiating a project desires to keep the information confidential, thereby denying the public (and even elected officials) of many financial details of what they are paying for. |
| PPP Concern Mitigation 1 | Limit what can be kept secret. |
| PPP Concern 2 | Because a private corporation is most interested in the most profitable project, and not the one that is most needed, they may force the public agency to entertain construction of projects that are not a priority for the public-but of course the public will pay. |
| PPP Concern Mitigation 2 | Only allow projects that are the top priority for consideration. |
| PPP Concern 3 | Even for projects that are a priority, there is a limited opportunity to seek competitive bidding. The agency has a tendency, or even a requirement, to accept the first proposal with only a narrow and insufficient window for other bidders to participate. |
| PPP Concern Mitigation 3 | Require a much longer window for additional parties to bid. |
| PPP Concern 4 | There may be a limit on public involvement in the design and final acceptance of a proposed project. As noted in Concern #1, the same goes for financial viability. Corporations are resistant to accepting public opinion, and I believe that is true generally, but a characteristic that can vary greatly. |
| PPP Concern Mitigation 4 | The public agency has to take control of the project and insist that the public be involved. This requires political will that may be lacking if the public agency has (or perceives) a financial need. It may not be possible to overcome this issue. |
| PPP Concern 5 | The public is inherently the guarantor of last resort. If for any of a multitude of reasons, a PPP project (and the private partner) fails, the public picks up the tab. In a proposed local project, the bonds are to be paid back from tolls for 75 years. Nobody can predict anything for 75 years, and is there a bond big enough to cover it that won't depreciate in 75 years? I doubt it. |
| PPP Concern Mitigation 5 | Require that the bonds be paid in 30 years. If it can't be done, it's not appropriate for a PPP. |
| Factors to consider by decision-makers | Rank the above? They are all important. Transparency Risk Track record of the private firm Is it in the public interest (have alternatives been considered) |
| Contract structures/techniques to protect public interests | I am not familiar with any. |
| Other perspectives
| The public has a hard time paying attention to the dry details for the PPP trend, and public officials cannot resist the easy money. The ability to have something built during their term of office without raising taxes is sooo good. So the corporations are having a field day, there is little protection for the public. |