Introduction

The United States of America

The highly developed counties like USA adopts PPP approach even in the management of service delivery institutions in social infrastructure sector namely hospitals, schools and universities etc.  For example, operation of a state hospital is done using the Least Contract method under PPP, in the State of Columbia.  The ownership of the assests of the hospital is with the State of Oklahoma and Columbia and the Columbia Health Care Corporation acts as the private partner or operator of the hospital.  On fee basis, the hospital is run by the private partner and the state government received up-front payment (US $ 40 mn.) subject to paying annual rent amounts to US $ 9 mn.  The key objective of the project is to improve the efficiency of operations and no transfer of ownership will be made.  The private operator can run the hospital for a 50 year period on lease basis provided that no violations of the agreement be made.

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  South Africa
  

South Africa is a country which has formulated a sound policy framework to attract PPP investors for making investments in infrastructure projects.  The beginning of an integrated national PPP strategy came in 1997 with the establishment of an inter-departmental task team to develop policies and reforms to facilitate PPPs.  Through establishment of the Municipal Infrastructure Investment Unit in 1998, municipalities have been given opportunities of obtaining technical and grant assistance for the promotion of PPPs.  One of the important PPP concession project in South Africa was South Africa and Mozambique linking road of which total investment was around US $ 426 mn.  This has been a new experience for the PPP approach, since it was difficult cross-border project.  The government of South Africa was able to implement several toll road projects under PPP approach and they are functioning without failures due to well established legal and strategic framework coupled with the creation of a PPP unit in the Treasury.  The other notable factor of success story is that political support and staff with highly qualified technical personalities.

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