The main task of any local governing body or even national government of a country is to govern its people and manage the administration of daily activities. The responsibilities of the public sector involve building infrastructure to improve the living conditions of the citizens.
Another main responsibility of the public sector is to facilitate access to all resources, even in remote most areas of the nation. Often completing big infrastructural development projects, the public sector department lacks the necessary expertise and manpower to complete these projects on time and with precision. Sometimes, many local government bodies do not have enough necessary funds to invest in a required infrastructure project and complete it in time. At such times, collaboration with the private sector brings out the best results for both the public and private sectors.
There are many public sector consulting firms that can assist both the public sector and the private sector to get collaborating on a project done. When the public and private sectors partner up it benefits both the public and private firms enormously and such partnerships should increase. The potential gains from Public-Private Partnerships (PPPs) are quite lucrative and beneficial for both parties.
Frees Up Budget for Public Sector
A heavily indebted local government body may not be able to fund a public infrastructure project because of its lack of funds. When the public sector thinks of getting into a Public-Private Partnership, the public sector gets access to private capital and enables them to relocate their resources and funds. A private partnership can invest in infrastructural development projects for the public sector. Most Public-Private Partnerships have a contract period ranging from 25 years to 30 years. The projects are mainly funded by the private sector against consideration of revenue from the public sector and end-user over a certain set period. Hiring a public sector advisory will guide the private sector into making a prudent decision for getting into a Public-Private Partnership. While, when a public enterprise hires a public sector advisory, they can verify the background of a private firm and inquire about its capabilities to finish a project.
Access to Valuable resources
Public sector consulting firms such as Green Urbane do thorough research while planning and executing a Public-private sector partnership project. When assisting both public and private sectors respectively, Green Urbane weighs on pros and cons for its client and gives a prudent solution. In a Public-private sector partnership project, the public sector gets access to skilled manpower and technology expertise of the private sector. While for the private sector, a large public project brings an increased opportunity to be innovative and develop new cutting-edge technology. Public sector consulting firms assist their clients while keeping these factors in mind. Both public and private players can build synergy and lead innovation to deliver service to the public at large.
Risk Transfer
Both public and private sectors face certain types of risks individually while carrying out day-to-day operations. A public service consulting firm relies upon past performance and reports and assessment tools to analyze the risk and cost needed to complete a project. Any public-private partnership project relies on the balance of cost and risk for the public sector and risk and reward for the private sector. The public sector is reluctant to bear even a minute risk and transfers it entirely to the private sector. The high risk involved in the private sector is usually compensated by the high cost of infrastructure projects. For example, in many countries, public schools own large areas of land, which brings in a lot of bureaucracy. Bureaucracy can consume a lot of government resources. In such places, if the private sector enters into managing daily operations, a lot of government funds can be freed up.
Investment opportunities
Public-private partnerships allow the private sector to invest in big and major infrastructure projects, which otherwise they wouldn’t have received. These opportunities help private sector build skills, operations, technology, and knowledge. When the private sector companies apply this tech and knowledge back in the private sector, they can build a good source of revenue for themselves. There are government agencies that have consistently delivered projects for a long period. And again, certain agencies have completely lacked in the development of an operation chain and risk management system. These are the times the private sector gets the opportunity to invest and get returns on them. Green urbane, one of the best public sector consulting firms, has over a long period consulted and assisted major names in the private sector in executing and investing in various Public-private- partnerships.
Improved efficiency and on-time delivery
A government agency may be good and efficient at certain things, but often it becomes difficult for them to efficiently complete a project and deliver it on time. Many times government agencies do not have the skilled manpower to finish a project if at such times if the government body starts to recruit the required people to finish the task it will take them a lot of time to finish the project. When public-private partnerships are preferred, the public sector with little to know headache can get the required infrastructure delivered for the public at large in the specific timeline without wasting any time. Public sector consulting firms advise public sector bodies on deciding which firm is the best of all and can deliver on time.
Business Development
For private sector companies, generating revenue and profits is the main aim. Whenever any firm is having second thoughts and doubts about investing in a public infrastructure project, public service consulting firms steps into advising the firm about whether they are going in the right direction or not. Green Urbane specializes in capital-intensive infrastructure advisory, with its industry experts, Green urbane has led several private firms to increase its revenue and develop business. Whenever a private sector business gets involved in major infrastructure projects, it brings out a large exposure for that company, bringing in more prospects for business development and revenue growth in the end.
Seeing all the pros and cons of a public-private partnership in current times, they offer lucrative and stable returns to both private and public sectors and for the public at large in the long end. For these immense benefits, the public-private partnership should be promoted and invested in. Green urbane has consistently ranked top among the best public sector consulting firms.