Successful Public Private Partnerships (PPP's) can deliver high-quality services at lower cost than the government. For this promise to be realized, not only must the private sector be more efficient, but the efficiency gains must be large enough to compensate for the fact that private sector borrowing costs are often higher than those of the government. The required efficiency gains are more likely to materialize if PPPs have the following characteristics: 1. The quality of services is contractible. 2. Risk is transferred to the private sector. 3. There is either competition or incentive-based regulation. 4. An appropriate institutional framework is in place. 5. The government develops its own technical expertise. 6. The fiscal implications of PPPs are properly accounted for and reported. The Concession Agreement for the Public Private Partnership (PPP) Project for upgrading to Dual-Carriage-Way of 327 km of T2/T3 from Lusaka to Ndola, including rehabilitation of 45km of Luanshya-Fisenge-Masangano Road was signed on 28th February, 2023 in Ndola. The total project cost is US$ 649,976,167, broken down as follows: (a) US$ 577.38 million is the total cost of construction; (b) US$ 1,000,000 for working capital; (c) US$ 1,849,500 for finance costs; and (d) US$ 69.74 million) for interest during the construction period. Using the six factor characteristic model listed above for a successful implementation of a PPP, appraise the Dual Carriage Way PPP
Successful Public Private Partnerships (PPP's) can deliver high-quality services at lower cost than the
government. For this promise to be realized, not only must the private sector be more
efficient, but the efficiency gains must be large enough to compensate for the fact that
private sector borrowing costs are often higher than those of the government. The
required efficiency gains are more likely to materialize if PPPs have the following
characteristics:
1. The quality of services is contractible.
2. Risk is transferred to the private sector.
3. There is either competition or incentive-based regulation.
4. An appropriate institutional framework is in place.
5. The government develops its own technical expertise.
6. The fiscal implications of PPPs are properly accounted for and reported.
The Concession Agreement for the Public Private
upgrading to Dual-Carriage-Way of 327 km of T2/T3 from Lusaka to Ndola, including
rehabilitation of 45km of Luanshya-Fisenge-Masangano Road was signed on 28th
February, 2023 in Ndola. The total project cost is US$ 649,976,167, broken down as
follows: (a) US$ 577.38 million is the total cost of construction; (b) US$ 1,000,000 for
working capital; (c) US$ 1,849,500 for finance costs; and (d) US$ 69.74 million) for
interest during the construction period.
Using the six factor characteristic model listed above for a successful implementation of a
PPP, appraise the Dual Carriage Way PPP
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