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Public and Private Partnership may be defined as “ A corporate venture between the Public and Private sectors, construct on the expertness of each spouse that meets clearly defined Public needs through the appropriate allotment of resources, hazard and wagess.

PPP is a joint venture of Public and Private sectors and coaction between Public and Private sectors. The PPP depend on the expertness of both the Public and Private sectors. PPP is a contract that involves a contract between Public and Private sector in which Private sectors provide a Public services/Projects and presume significant, fiscal, proficient and operational hazard in the undertaking. PPP is a measure toward affecting Private sector and to keep them accountable for input. PPP reference peoples needs clearly through the appropriate allotment of resources, hazard and wagess. PPP is turning twenty-four hours to twenty-four hours because it is an efficient manner of presenting the Public services to the multitudes.

PPP is a joint venture of Public and Private sectors and coaction between Public and Private sectors. The PPP depend on the expertness of both the Public and Private sectors. PPP is a contract that involves a contract between Public and Private sector in which Private sectors provide a Public services/Projects and presume significant, fiscal, proficient and operational hazard in the undertaking. PPP is a measure toward affecting Private sector and to keep them accountable for input. PPP reference peoples needs clearly through the appropriate allotment of resources, hazard and wagess. PPP is turning twenty-four hours to twenty-four hours because it is an efficient manner of presenting the Public services to the multitudes.

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Some of the advantages are

  1. Diversification of Risk.
  2. Efficiency.
  3. Cost effectual ( clip and money salvaging ) .
  4. Creation of value added goods and services.
  5. Accountability for proviso of quality services.
  6. Effective use of province assets.
  7. Invention and diverseness in Public Private services.


Disadvantages of PPP are

  1. Complexity of the Undertaking.
  2. A building hold in the undertakings.
  3. Operational trouble.
  4. Fiscal hazard. ( the hazard that the undertaking do n’t acquire funds/finance ) .
  5. Commercial hazard ( Demand and payment hazard ) .
  6. Changes in Exchange rates.
  7. Regulatory ( Changes in Torahs like duties )
  8. Political state of affairs.
  9. Force majeure ( Natural catastrophes ) .


Different types of PPP theoretical accounts are

  1. Service contracts.
  2. Management contracts.
  3. Renting contracts.
  4. Concession contracts.
  5. Green field contracts.
  6. Build, Operate transportation contracts.
  7. In design build finance contracts.

Now a brief overview of these contracts and their strengths and failings.

Service contracts:

Service contracts is a contract between public bureaus and private sectors and is suited for simple and short term demands. It is the limited type of PPPs theoretical account. In this understanding the Private party procure operation of an assets for short period. The period of two to five old ages. In this contract the duty for investing and direction of the undertaking are of the Public sector and besides bears the fiscal and residuary value hazards. While the Private sector provides the services.

Potential Strengths:

The chief advantages of service contracts are

  1. It provides us comparatively low hazard option for the enlargement of Private sector.
  2. It is less expensive to present the populace services.
  3. It encourages the competition the Private sector.
  4. It is a good beginning of engineering transportation.
  5. It is less dearly-won.

Potential failing:

The chief disadvantages of this contract is

  • It is a short term contract/project and is non suited for to pool up capital.
  • Loss of managerial control.
  • Loss of flexibleness.
  • Loss of internal and external focal point.
  • Loss of competitory border.

Management contracts:

In this type of Contracts the duty for the operation and direction is passed to the Private sectors. The life of these types of contracts are from three to five old ages but can be extended. The Private sector/party is remunerated/hired on a fixed fee footing or on the inducements or fillips footing linked to a related or specific undertaking. In these types of contracts the Public sector bears the fiscal and investing hazards. This is an efficient manner set abouting a undertaking because the Private sector is efficient and have adequate accomplishments and strong involvement in bettering the service quality.

Potential strengths:

The chief advantage of these contracts are that the ownership remains with the Government and merely the operation and direction is transferred to the Private party. Management contracts are less controversial in nature. These types of contracts are less expansive because the Private sector is more efficient and can make the occupation betterly than the Public sector because of the experient and skilled direction.

Potential failing:

Some of the major disadvantages of direction contracts are

  • The authorities gives a certain part of control to the Private sector which may take to low quality services.
  • Delay in clip.
  • The flexibleness in these contracts are finished or reduced.
  • The quality of the merchandise is reduced.
  • The Private party must be clearly evaluated for best public presentation.

Renting contracts:

Renting agencies when one party lesser gives his assets to another party leaseholder on some fixed payments. In renting the Private party purchase the income watercourses generated by the Public owned assets for an exchange of fixed leased payments and the Private party is responsible for care and operation of the assets. The continuance of leasing is from ten to twelve old ages.

Renting contract is best for Infrastructure development.

Potential strengths:

The leasing finance is a fixed rate finance. Leasing is rising prices friendly. Through leasing and this contract brings efficiency in the Public service bringing. In renting contracts the Private sector competitively bid for the rental means supplying the services to the general people. The addition in the leasing contracts is about due to the improved and new engineering.

Potential failing:

As we know that the leasing contract is based on the watercourse of payments/installments made by the Private sector but if the Private sector does n’t do payment in clip than a job arises and one of the chief disadvantage of renting contract for the Private sector is that the duty for care and capital investing is of Private sector.

Concession contracts:

Concession contracts is a type of renting contracts in which the ownership of the assets remain with the Government and the Private party is responsible for the care of the assets and besides to supply the capital investing and at the terminal or completion of the undertaking the Government receive the undertaking and pay a certain amount of sum to the Private party harmonizing to the contract. In these type of contracts the Government gives grant to the Private sectors to research some thing like oil and gas.

Potential strengths:

The advantages of the grant contract is that it mobilise the funds/capital from the Private sector for the building and geographic expedition of bing undertakings. In grant contracts the Government assets are decently utilised and maintained by the Private sector expeditiously and after completion the Private sector gives the project/assets to the Government and the Government pays a certain sum of money to the Private sector harmonizing to the contract. Through offering the contract Government creates competition among the Private sector which leads to low cost.

Potential failing:

One of the major disadvantage of this contract is that the timing/validity of these undertakings are more and these contracts are long term contracts which leads to complexness. The adulthood of these undertakings are more than 20 old ages. Due to the longer period it is hard to pull off and organized. It requires complex monitoring and design system and besides cut down competition because a few large Private contractors are available.

Green field contracts:

These types of contracts are largely used for the development of new undertakings. In these type of contracts the authorities merely supply the land to the private sector. Examples of Greenfield contracts are undertakings like new mills, airdromes, development of Parkss which are build from abrasion.

Potential strengths:

In green field contracts the Government merely supply the assets and the Private sector physique, design, develop and pull off the assets. It is used for developing the new undertakings like Parkss and airdromes etc.

Build, operate transportation contracts:

In these types of contracts the Private party is responsible for the designing, building and the operation of the assets. In these types of contracts the authorities bears the fiscal hazard but have control to halt the undertaking at any phase.

These types of contracts are best for H2O and wastage undertakings.

BOT has the undermentioned types.

  • Built ain operate transportation ( BOOT ) .
  • Built rental operate transportation ( BLOT ) .
  • Built rent operate transportation ( BROT ) .

Potential strengths:

The hazard is shared with the Private sector. Due to the efficiency in the Private sector the Government gives undertakings to the Private sector. The Private sector is responsible for the design, building and service bringing. The Government gives these types of undertakings largely to the experient and skilled Private sectors. It besides facilitate the transportation of advanced engineering by presenting international contractors in the host state. It is an effectual manner to convey the Private financess for development of new undertakings like substructure and H2O sweetening development.

Potential failing:

Some of the chief disadvantage of this contract is that it is non suited for little undertakings. The dealing cost in the BOT is higher as compared to the other contracts. The success of the BOT undertaking depends upon the financess raising and when significant gross are generated in the undertaking during the operation stage. BOT contracts may be dearly-won some times.

In design build finance contracts:

In these types of contracts the Private sector/party design the goods and services harmonizing to the demand setted by the Government entities.

These type of contracts are best for roads building and H2O.

Potential strengths:

The Private sector contractor is responsible for the design and the building. Subject to the proviso that the contractor is non, under an unamended JCT WCD, responsible for any design provided to him in the Employer ‘s Requirements papers, the employer should hold a individual point of duty and liability against the contractor. This is more advantageous than the traditional signifiers of contract where the employer has entered into separate building and design understandings. A common job being that if a claim is made, the contractor, designer or other design advisers may reason over the extent of their duty.

This contract is clip salvaging agencies that the Private sector are interested to finish the undertaking rapidly and is besides cost economy and the merchandise is of good quality because the Private sector is more efficient than Public sector and the merchandise is prepared harmonizing to the authorities demands.

Potential failing:

The chief disadvantage of this contract is that authorities largely give the undertakings to the big Private sectors and ignores the little Private sector and besides cut down the competition through disregarding the little sectors. There may originate the job of favouritism and besides the cost of undertaking may originate through cut downing competition in the Private sector and besides may originate jobs in planing. The perceptual experience remains, surely amongst designers, that design and physique is non the appropriate procurance method where design quality is a high precedence. There is merely limited range for the employer to do alterations to his

demands one time the Employer ‘s Requirements and Contractor ‘s Proposals have been agreed otherwise the cost effects may be prohibitory.

A instance of Public Private Partnership of the Melaka-Manipal Medical College:


Melaka-Manipal Medical College is the first Indo-Malaysian joint venture in private medical instruction. The proposal was conceived from the “ Look East Policy ” of the former Prime Minister, Tun Dr Mahathir Mohamad. He recognized the demand for greater South-South cooperation in the economic and societal sectors. This led to the sign language of an understanding in New Delhi in 1993 witnessed by both the Prime Ministers of Malaysia and India. The understanding was between the Joint Venture Medical College Corporation ( JVMC ) Malaysia and the Manipal Academy of Higher Education ( MAHE ) India to offer a twinning programme taking to the MBBS grade. The aim was to supply extra physicians for Malaysia and offer chances for pupils in this part to analyze medical specialty at a cheaper cost than in the West. From 1953 to 1993, Manipal had trained over 2700 physicians from Malaysia. The state of affairs changed in 1993 with the new policy on admittance of foreign pupils to medical colleges in India. The Malaysia was all of a sudden in pressing demand of developing chances within a minimal lead period. The Melaka-Manipal

Medical College seemed to be an first-class thought for managing this state of affairs.

The Partnership Process

The spouses in the Joint Venture Medical College are:

  • State Government of Melaka.
  • Manipal Group.
  • Members of the Indian Diaspora.

Contribution of Government of Malaysia

  • Use of Hospitals and Health Centers in two provinces
  • MMMC is allowed to utilize the installations of the General Hospital at Muar and Melaka and Health Centers for the intent of the instruction and preparation of pupils.

  • Teaching Staff
  • Advisers in the infirmaries assist in the clinical preparation of the pupils. Over 100 advisers work as portion clip instructors. The Malaysian Medical Council considers the services of 3 portion clip module equivalent to 1 full clip employee.

  • Supervisory and Advisory Servicess
  • The authorities regulative organic structures i.e. the Malaysian Medical Council and the National Accreditation Board supervise and supply consultative services to guarantee care of minimal criterions in conformance with authorities ordinances.

  • Fiscal Assistance to pupils
  • Government bureaus provide scholarship to meriting pupils.

    Contribution of Private Spouses

    Basic Science Training at Manipal

    There is a deficit of basic scientific discipline Faculty in Malaysia hence the first-class installations at the Manipal Campus India are used for the first stage.

  • Infrastructure for the Melaka Campus
  • Construction of the campus at Melaka including inn and recreational installations comparable to the best in the state.

  • Provision of Patient-Care Service
  • MMMC provides module to augment patient-care at the infirmaries and wellness centres.

  • Provision of trained medical officers to run into state ‘s demand
  • The freshly graduated physician is required to undergo compulsory revolving resident intern ship for a period of one twelvemonth.

  • Training of staff in the Health Centers and set uping CME for physicians
  • These activities help in upgrading the criterions of physicians and Para medical forces in the wellness centres. The CMEs arranged allow physicians to maintain abreast with progressing medical cognition.


Results and Benefits for Malaya

  • The Joint Venture helps the wellness sector in Malaysia to travel towards the coveted physician: population ratio in a planned mode. MMMC has contributed 213 physicians in the past two old ages.
  • Since the clinical preparation is carried out in Government Hospitals and Health Centers in Malaysia, the alumnuss are really familiar with the operation of the authorities wellness sector and national wellness policies. Initiation of trained module from India augments the specializer work force in Malaysia. The Melaka-Manipal Medical College would otherwise hold drawn a big figure of specializers from the Malaysian wellness bringing system.
  • There is an utmost deficit of instructors in Basic Sciences hence this stage of preparation is carried out in India. The college helps to make an academic and research environment in the Government Hospitals used for instruction, therefore upgrading their quality of attention.

Benefits for the Students

  • An chance to analyze medical specialty in a state of affairs where capacity is restricted.
  • Cost of instruction is well less than analyzing in the western states. Populating on a multidisciplinary university campus at Manipal gives the pupil a alone cross-cultural experience and physiques assurance and independency.
  • The pupil becomes a portion of an esteemed educational system with an international repute and a world-wide alumna.
  • The clinical stage is carried out in authorities infirmaries in Malaysia where the pupils work with patients and staff from different cultural backgrounds akin to their ain. This allows for effectual communicating and resonance and seamless amalgamation into the environment into which they finally will work.

Benefit Outcomes for the Private Partners

For Manipal, the constitution of the college in Malaysia, gives the chances to:

  • Establishing a medical college in the minimal lead period and at favourable costs because of the public-private partnerships.
  • Retain old links with India, holding trained 2700 Malayan physicians in Manipal
  • to set up its repute and trade name name Overseas to get the best patterns in medical instruction and wellness bringing and to fix for planetary competition

Restricting Factors for A Palatopharyngoplasty:

Medical Education in India is regulated by the Medical Council and the Ministry of Health. The present statutory conditions imposed by the MCI do non let for the flexibleness that is required to further partnerships between the Public and Private sectors.

The ordinances are excessively rigorous with respect to ownership and operation of learning infirmaries, For the local spouses to portion in the bang of making an establishment in the service of their state and the repute and fiscal additions that will accrue in the hereafter.

Decision of the Case:

It has been a really rewarding experience to work with the populace sector in Malaysia. Good administration and an enabling environment have allowed for a trickle down consequence, in that the value of such concerted attempts seems to be known to all classs of employees. This facilitates first-class work relationships leting for a participatory procedure which is exciting. The Regulatory procedure is positive with the right focal point on quality. As an incremental attack Manipal is researching the possibilities of get downing Dental, Pharmacy, and Allied Health Programmes. The success of the venture is due to the matter-of-fact attack of the Government of Malaysia towards Public Private Partnerships in instruction and health care.


From the above treatment and after analyzing the theoretical accounts of PPP it is clear that The Partnership is non ever fruitful for the Government SO a Government should come in to contracts with Private sector after measuring the Private sector efficiency and the Government must hold to portion the hazard with the Private party. If Government does non reassign an appropriate degree of hazard to the private sector so it should non be availed. But after come ining the successful contract with the Private sector the Government can easy present quality services.


  • Articles from Newsletter.
  • Kathmandu University Medical Journal ( 2005 ) by Nagra JS.
  • Article by Mohammed Jalaudin.

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