When it comes to Public-Private Partnerships, trust is key to maintaining balance between these two forces. Given the current economic state on a global scale, industry leaders from both the public and private sector need to think and invest intelligently when it comes to well-needed infrastructures all around the world.
From avoiding and planning around underspending, understanding fiscal constraints to risk assessment and strategy alignment, consulting with professionals who are well versed in the field of public-private partnerships could mitigate losses and risk, and develop profitable and sustainable projects for the long term.
The Importance of Trust in P3
In any project, it is of the utmost importance to make sure that everything is in line with the project’s primary objective – its mission, so to speak. When key points fail to align and certain decisions or goals remain unclear, any infrastructure that is built upon that kind of foundation is doomed to fail.
At the guidance of expert consultants, this kind of risk could be mitigated significantly. Of course, that involves putting in trust from significantly different facets of society. Private industry leaders may have different agendas to public ones but infrastructure is both beneficial and necessary to both; it can then make or break the overall success of the project.
A Middle Ground, Third Party Keeps Balance
Objective parties, such as consultancy firms, allow for that unbiased point of view that gives both parties the peace of mind that all responsibilities for any infrastructure is accounted for.
Public-Private Partnership consultants can offer advising on contributions from both the private and public sectors to a particular project. As these partnerships are, essentially, collaborations between a private party and a public – usually government agencies and the like – there are often certain parameters set forth by the public party on how the conceptual project becomes a reality.
Identifying and fulfilling these parameters is an area in which a consultant can assist. Coordination of each party’s expectations from both the other and from themselves, as well as the methodology each party intends to implement, is a must.
There is, of course, risk involved in Public-Private partnerships. Each party must maintain their own identity and assign tasks clearly and concisely in order to avoid any confusion or any breach of international best practices or contractual obligations.