Forms of Publiv-Private Partnership

Forms of Public -Private Partnership 
1. Contracting:A contract is a legally binding written agreement between two or more parties that specifies something provided and something received in return. 

Various contractual forms are
1. Service contract: Government bids out the right to deliver a specific service and sometimes provides the assets needed.

2. Management contracts : The assets of the institution continue to be public but operational management becomes private E. g. Management of hospital 

3. Leasing :The private sector finances and builds a new facility which is then leased to the public sector. The public partner makes scheduled lease payments to the private sector and thus acquires equity in the facility.  At the end of the lease period the public agency owns the facility.  Under the lease arrangement either the public agency or the private operator may operate the facility during the term of the lease e. g. equipment. 

4.BOT/BOO:The private sector builds a facility in accordance with a design prepared by the public sector. In the case of the BOT (Builds, Operate,  Transfer ) the private sector finances the construction of the facility but the facility is owned by the public sector while in the case of the BOO(Build Operate Own ) legal ownership rests with the contractor until the end of the contract term.

Example of a BOT project is construction of roads (BOOT )Build, Own, Operate,  Transfer ) promotes the long term partnership between public and private sector. 


World Bank -Five mechanisms of Contracting :

(a) Contracting in :Government hires one or more individuals on a temporary basis to provide services  (e. g. health care hiring a specialist for a week)
(b) Contracting out: Government pays an outside individual /organization to manage a specific function  (e. g. contracting a university to conduct needed research )
(c)Subsidies : Government gives funds /commodities to private services e. g. immunisation services 
(d)Leasing or Rental : Government offers the use of the its facilities to a private organization. 
(e) Privatisation : The Government gives or sells public facilities to a private group. 


2.Social marketing : Application of commercial marketing techniques to achieve a social objective. These programmes include :
(a)An objective that is beneficial to the consumer /target
(b) Implementation that is not driven by profit 
(c)A goal focused on changing behaviour not simply increasing awareness 


3. Social Franchising : Established bussiness model designed to allow growth and replication while retaining certain controls and quality standards. Applied to initiatives that are designed to bring about social change . The two models are
●Stand Alone Social Franchise : The franchiser controls all the goods and services 
●Fractional Franchise : The franchiser only controls one/few of the goods /services. 

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