Nine thoughts on differences between Public Procurement and PPPs N0 4

Public Procurement planning is the preparatory stage for procurement. It involves market surveys and evaluations,  choice of methods of procurement and standard document packages to be deployed and scheduling of activities to be carried out to implement procurement activity often in a given format, for a given period. PPPs on the other hand involve extensive project appraisal and feasibility studies. These evaluations cover the desirability of the project as well as the following; clarification of the need for  investment, objectives of the investment, analysis of possible options, identifying the preferred option, output specifications, value for money and affordability analysis, risk identification and allocation, monetization of benefits for calculation of Net Present Value,  project suitability to be procured as a PPP, and its economic viability among other issues.

Advertisements

One thought on “Nine thoughts on differences between Public Procurement and PPPs N0 4

  1. Traditional Public procurement also encompasses a wide range of contracting arrangements including separate design, supervision and construction contracts and design/build contracts. However, all these arrangements involve public rather than private finance. Therefore funding is primarily by the government or its agencies.
    Procurement under PPP is generally more complex in nature and requires significant upstream evaluation of requirements and risk analysis. Funding here is largely by the private partner or concessionaire and private finance in turn brings in clear risks allocation and incentive mechananisms which are definite characteristics of PPP

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s