Introduction

Different Public Private Partnership approaches

Different modes of PPP approaches are operational at present and based on the mode of operation, they it can be categorized into four types.

i Management Contracts Entering into an agreement by a government with the private sector relating to supply of certain service either on short term or long term basis on a limited terms is described as Management Contracts. Mostly, the private sector participation is obtained through this method to get the services like rural roads, drinking water supply, and sanitation etc. Under this method, the government institutions undertake their responsibility in providing the relevant service by continuously investing in the same and the private sector gets involved by way of a short term or long term contractual agreements only for the implementation of providing and maintaining such services.

ii Provision of infrastructure facilities through small scale private suppliers. It is not compulsory to deal with large scale private sector in PPP’s.  Many developing countries are presently implementing projects for providing public utilities or services through small or middle scale entrepreneurs.  The projects like small scale power plants and drinking water supply schemes implemented by middle or small scale entrepreneurs are the good examples. This is not a privatization and is more or less similar to management contracts. Providing these types of services should be carried out under the government rules and regulations as those services are purchased by the government. (Example; purchasing of electricity from the small power plants at an agreed unit price) The distribution of such cervices is carried out through the government or private sector.