Managing Public-Private Partnership docx.

Managing
Public-Private
Partnership
Student Details
1-1-2020

PPPs 1
Managing Public-Private Partnership
Public-Private partnership is being adopted by the nation’s government to develop the
nation’s infrastructure without investing heavily on the projects and infrastructure. Under the
public-private partnership, the government privatise the public enterprises and partners with
private enterprises to operate the enterprise with advanced technological and operational
skills. The success of the collaboration is dependent on the contribution made by both the
government as well as the private sector (Wang, et al., 2017). The essay is focused on
analysing the Public-Private Partnership in Lebanon and the effective development of the
nation’s infrastructure after the civil war. The public-private partnership is based on certain
situations, the essay effectively analyses the situation in the context of Lebanon, and helps in
understanding the role of the private sector within the collaboration.
Public-Private Partnership (PPPs) is an effective way to develop the nation’s infrastructure
and to support the economic structure of the nation. It is assumed as the private sector has a
substantial amount of investment, and technical as well as operational stability as compared
to the public sector, which will effectively contribute towards the economic development of
the nation. PPPs helps in providing a better infrastructural facility to the nation and helps in
completion of the governmental projects within the allocated time and increased ROI on the
project. Also, with the private expertise in the sector, the risk within the projects reduces and
the efficiency of the project is improved (Delmon, 2017).
PPPs are required to operate in different organisational and sector backgrounds due to which
they may possess to threats within the industry that may affect the ROI on the projects, under
such cases the partnership between private and public leads towards the collaborative inertia.
The collaborative advantage within the PPPs is based on certain bases that include;

PPPs 2
Access to Resources: as in cases when the organisation fails to acquire the resources on their
own then they focus on collaborating with the organisations to share the resources as well as
their expertise.
Shared Risk: Also, the competitive advantage is based on the requirements to share risk
within the organisation, as with the partnership or the collaboration both the organisation is
entitled to the risk within the business environment (Sarmento & Renneboog, 2016).
Efficiency: PPPs also result in improving efficiency, as the private organisations are more
efficient than the public ones, therefore the nation focus on PPPs so that the efficiency can be
improved.
Coordination: As efficiency helps in achieving economies of scale and helps in better
coordination within the activities of the organisation.
Learning: Also, PPPs help in mutual learning among the organisations, as both the
organisation learn from each other expertise within the industry.
Moral Imperative: There is a moral perspective behind PPPs, as the public organisations
alone cannot deal with the issues within the society such as unemployment, health promotion,
economic development. Therefore, the partnership between public and private organisation
helps in dealing with such issues effectively within the nation (Investopedia, 2019).
Lebanon is focusing on the collaborative advantage of PPPs so that the effectiveness can be
ensured within the nation. The government ensure that the activities within the nation
contribute towards decreasing unemployment rate and the government will be able to attract
more foreign capital. PPPs will help Lebanon government in improving the efficiency of its
state-owned enterprises, as the private partnership of its firm EDL will help the government