《ppp for and against》.pdfVIP

China-USA Business Review, ISSN 1537-1514 September 2011, Vol. 10, No. 9, 893-898 Public-Private Partnerships—For and Against Ali Turhani, Gjergji Shqau Aleksander Xhuvani University, Elbasan, Albania This paper aims to make clear about which are the advantages and disadvantages of public-private partnership (PPP) and what will be the main indicators to be used to appreciate the benefit of PPP in different projects of public services assets. Having the experience of other countries with PPP, it will help the Albanian Public Institutions to be able to take the right decision in investing the public services assets through PPP or by budget fund. Public authorities should have a base good understanding for the policy and financial problems, and also should have a clear role that it should play in the PPP project, as well as the benefits that they will have from this project. Understanding of this is very important to the Albanian Public Institutions, especially for the Local Authorities in Albania. Keywords: public-private partnership (PPP), additionality, whole-life cost, economies of scale, complexity Introduction Why has there been such a worldwide growth in interest in public-private partnerships (PPPs) over the last few years? The public-sector reform movement known as “new public management” provides the theoretical background for PPPs, but in reality the main driver for growth is that PPPs avoid limitations on public-sector budgets. However, the detailed debate on the merits and demerits of PPPs is a highly complex one. A variety of arguments is used by governments for promoting PPP projects, but many of these are of a somewhat ex-post nature, i.e., they are used to justify a decision which has already bee