Introduction

iv Public private partnership based on readymade service (availability based PPP) Under this method also, the production of a service or its responsibility is assigned to a private party by the government based on the existing on rules and regulations. Accordingly, planning, investment, building re-building and management and maintenance are assigned to a private company or an investor and the services are purchased by the government. After purchasing of such service, it is distributed to the public by the respective government agency or through a private company. The purchasing of such service production from the private company is done by the government for a specific time period and the price agreed upon at the time of purchasing.  Under this arrangement, the relevant company doesn’t have any risk connected to demand of its service or price. At the same time, the conditions related to supply of service and agreed price are included into the agreements reached at the beginning.  If necessary, required legal provisions for termination of the agreement or renewal of the same is included into it. The best example for this type of partnership is the power purchase agreements.  The power generated by the private power generation plants are purchased by the Ceylon Electricity Board and distributed to public through its national grid.  The distribution of the power is also done through the private companies. Internationally experienced that the social infrastructural projects like schools, hospitals, jails etc. are also managed through this Public Private Partnerships (PPP) approach. Agreements are also reached with private sector for the provision of hostel facilities, supply of machineries and other service assistance connected to such projects. When a necessity has arisen to provide maximum service in an efficient manner while there is a shortage of capital investment, this approach is very important. The UK, Canada, Japan and South Korea have entered into such service agreements.

Roles and Responsibilities of Public and Private Entities under different forms of Private Sector Participation