Insights

Public Private Partnerships

Public Sector cooperation with the private sector to meet public infrastructure needs is a global trend. For public infrastructure projects such as – highways, hospitals, schools, prisons, public offices, railways, water incineration installations etc – large investments are required such investments are often beyond the borrowing capacity of the public sector. Traditionally these projects were funded and managed under the full responsibility of the public sector. Since 1997 the United Kingdom has used public-private partnerships to build hundreds of schools, hospitals, roads and other facilities. More than $ 20 billion worth of privately funded roads are in the pipeline in the United States.

In Central Europe public-private partnerships are becoming the delivery model of choice for new infrastructure, with governments viewing PPPs both as a way to complete projects on time and on budget and as a means to attract foreign investment. 

Key aspects of Public Private Partnerships

Public-private partnerships come in different shapes and sizes. Key aspects are:

  • Innovative approach on the allocation of responsibilities and risks;
  • Buying a service instead of an object;
  • Private financing of public infrastructure;
  • Whole life cycle approach.

Most often PPPs have the shape of concession contracts between a public and a private partner.

Deloitte Central Europe aims for market dominance

Deloitte Central Europe recognizes the global trend towards Public-Private Partnerships and sees interesting market opportunities in the Central European region. Our short term strategic goal is to build eminence and become recognized as the best full service advisory firm on PPP projects in the region.

On a global scale Deloitte has extensive experience in advising both public and private parties in creating successful partnerships. We have experience on all relevant aspects of PPP projects in all relevant sectors since we have been involved in nearly 500 projects.

Since Deloitte put serious attention on the emerging PPP market in the region, several prestigious PPP projects have been won in Central Europe.

Central European Strategy and PPP practitioners

Within the region a network of PPP-practitioners targets the markets, based on a coordinated strategy. We have close contacts with networks of PPP-practitioners around the globe.

For information on Deloitte’s strategy or any other questions on PPPs contact our expert with years of expirience Vladimir Bešlagić.