This model has been more cost-effective than
traditional ones, writes Brad Vann.
Since their debut in Australia, public-private partnerships
(PPPs) have been the subject of heated debate – and
plenty of criticism. They have been variously described as
"shonky", costly, a cash cow for the greedy private
sector, and as a way for governments to move debt off their
books.
Much of this criticism is misguided and unwarranted.
It is true that some PPP projects have not delivered on
investors' and private sector expectations. Mistakes have been
made. This does not mean the PPP model itself is flawed or that the
private sector should be shut out of infrastructure delivery.
There are many examples of successful PPPs in action –
Melbourne's CityLink and County Court projects are just two
– which demonstrate the clear benefits of private sector
investment in infrastructure – investment that will be
needed if Australia is to deliver on its ambitious infrastructure
program.
