The new development trend

May 12, 2018 Letters

Dear Editor,
Public-private partnerships (PPPs) are a relatively recent phenomenon in development cooperation. PPPs are generically defined as ‘a form of cooperation between Government and business agents that agree to work together to reach a common goal or carry out a specific task.
At the same time they jointly assume the risks and responsibilities and share resources and competences’.
At a Post Cabinet press briefing earlier this year Minister of State Joseph Harmon highlighted the importance of public-private partnerships. He said that “private sector involvement in the community is critical for transforming Guyana.”
Therefore, the government will be engaging the private sector, and encouraging private- public partnerships, “so that the synergy between the government and private sector can be used together to move and boost the country,” Minister Harmon indicated.
Important areas for PPP development are found in sectors where substantial initial capital investments are required and that offer real opportunities for cost recovery through payment of tariffs and fees. The Public Private Partnership (PPP) will help set Guyana on an upward Trajectory as it relates to Infrastructural Development.
The Benefits and advantages of the Public Private Partnership can be significant when they are designed well and implanted in a well-balanced regulatory framework.
Positive outcomes have to be earned through projects that can catalyse development which are financially viable, thus minimizing on the impact on the national debt and favourably affecting Gross Domestic Product growth.
Several projects have been planned, including construction of the Demerara Harbour Bridge and the building of a new hydropower plant and a large hotel.
This best practice approach can be used to benefit Guyana in several ways including; meeting Guyana’s Infrastructural needs thus increasing and providing a more efficient and resilient infrastructure needed for the support of private sector growth and creating an environment to enhance competitiveness. Additionally, it can improve efficiency and management of Public assets.
It will also provide balancing fiscal prudence with fiscal stimulus and also achieve diversification promoting new areas of economic growth, particularly export oriented sectors, expand employment opportunities reducing vulnerability to shocks and build resilience.
Since one of the Government of Guyana watch word is Transparency, the Public Private Partnership will provide Transparency and Probity, environmental and social sustainability.
PPPs will require strong legal, policy, appraisal, approval and monitoring arrangements to guide policy decisions and to enforce Public Private Partnerships agreements.
Best Regards,
Dillon Goring

Note: Public Private Partnerships are long-term relationships between public and private sector entities that will bring private sector resources, including financing, technological, technical and managerial expertise to create infrastructural projects for public good. Such relationships are intended to ensure that the investments are solid and sustainable, and that they contribute to the improvement of public finances and the expansion of fiscal space.

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News