PPP projects are more likely completed on time and within budget, but these are not sufficient reasons by themselves to undertake a PPP. On time and within budget completion are not included in the above table because if desired, these outcomes could also be achieved through appropriate provisions in conventional procurement contracts.
PPPs are said to offer the advantage that risk is transferred to the private sector. Risk transfer is not an advantage in itself, as it can be expected to be offset by a risk premium in the price for the project. The advantage of risk transfer is that it provides the incentive for obtaining the benefits that are set out in the table above.
PPPs are said to offer finance for projects which would otherwise be unaffordable (off-balance sheet financing): PPPs that are financed by service payments from government create a liability to make regular payments over the life of the project. These are, for accounting purposes, treated the same way as the interest that is payable on government debt. They therefore give rise to a similar liability on the Crown's balance sheet as if the project was financed with Crown debt. The provision of private sector finance is therefore only an advantage in so far as it strengthens incentives for obtaining the benefits that are set out in the table above.