2.3  Benefits of PPPs

For government departments and agencies, contracting the delivery of infrastructure and non-core services to the private sector creates opportunities to deliver improved public services more cost-effectively.

PPPs can potentially deliver significant benefits in design and the quality of services and the cost of infrastructure. PPPs can draw upon the best available skills, knowledge and resources, whether they are in the public or the private sector. Departments and agencies can focus their own efforts on the delivery of Core Services, and use the savings generated to improve or expand other services.  PPPs can also bring forward infrastructure expenditure, including through delivering projects as part of a single package instead of staging capital development over the long term. .

PPPs also provide the construction, service and finance industries with opportunities to generate efficiencies and cost-effectiveness in the delivery of infrastructure and non-core services through innovation and specialist expertise, and to develop their businesses by doing so.

The PPP approach has a demonstrated ability to deliver value for money results for the community. Value for money from private sector involvement can be determined by governments through evaluating the project's costs and benefits.