Public-Private Partnership is an agreement between the public sector and private one, in which

the private sector participates in governmental projects, furnishing as such the public entity with
the skills, technical assistance, funds, or any other element constituting an obstacle to the
completion of the project. In other words, it is the cooperation of both sectors that characterizes
the PPP. In this perspective, the private sector’s contribution can come under the form of
management, design and building, maintenance, operation, financing, and sometimes leasing or
owning temporarily or even permanently the concerned public entity.

Collaborative Advantage is the ability to form effective and rewarding partnerships with other
organizations (industries, agencies governmental bodies etc…) for mutual benefit, to achieve
progress, development and efficiency. While there is the Collaborative Inertia: is when
collaboration between two or more entities induces a slow progress without achieving any
tangible outcome

There are six bases of collaborative advantage, as follows: Access

to resources: when an association is unable to achieve their goal with
their own resources they often collaborate with another association. It can
mean searching for human resource or budgeting, but most association
collaborates to get different supplies that include skilled people and
technology. For example Collaborations involving organizations in the non-profit and public
sectors as to share resource, expertise, knowledge and connections. Such as, the police, legal
professions, probation services, schools and neighborhood and youth groups collaborate over
youth criminal justice issues.

Shared Risk: the organizations collaborate the results

of disappointment on a venture are too high for them to chance taking it by
themselves, so they share the danger .

Efficiency: Governments have

frequently observed private associations as being more proficient than open
ones, thus he last has advanced private-public collaboration.

Co-ordination:
coordination is an essential component to accomplish productivity. Coordination: is the
demonstration of arranging, influencing diverse
individuals or things to cooperate for an objective or impact to satisfy wanted
objectives in an association.
Learning: while coordinated efforts are
set up to seek after some joint action, some are made with the point of shared
learning.

Moral Imperative: Collaboration is fundamental to ease any

issues at the association, business, society, and national levels.
Public-Private Partnerships, as is the case with any other venture, are generally associated with
several types of risks, which are to be borne by the private and public sector according to an
agreed-upon scheme

Operating Risk •Operating Risks Exceeding Expected Figures

Demand Risk •Lower than Expected Demand for Services Technical Risk •Technical Issues
Might Arise During the Flow of the Project

Financing Risk •Although Private Funding is Much Easier to Raise than Public Funding, the
Project Might be Short on Budget

Regulatory Risk •New Regulations during the Contract Period can Impose Additional Costs

Political Risk •A New Government can Find the Project not Matching its Interests, so it May
Reconsider the Contract or Might Even Cancel or Expropriate the Project Residual Value Risk
•Significant Decline/Obsolescence of Value of Assets at the End of the Project Construction Risk
•Possibility of Design Problems, Building Cost Overruns, and Project Delays Financial Risk
•Risks Related to the Variability of Financing Costs Factors (i.e. Interest & Exchange Rates)

Performance Risk •Risk Related to the Continuity & Quality of Service Provision •Availability
of an Asset
file:///C:/Users/OWNER/Desktop/Public-Private_Partnership_Report.pdf

Source: Public-Private Partnerships: Heather FUSSELL and Charley BRESFORD, Credit

Libanais Economic Research Unit