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Barriers to Public and Private CooperationGoals and Vision
- Differing organisational systems. In many instances, the organisational architectures of the private-sector players and public-sector players do not complement one another. This is particularly true of entrepreneurial businesses and bureaucratic government offices attempting to work together.
- Differing levels of "business" sophistication. In many countries, the business skills of civil servants will vary from department to department within the public sector. Electricity supply companies, for example, tend to have greater management expertise and business skills than waste collection and water distribution companies.
- Size inequality. (big government-small business & small-government-big business). Partnerships between parties of radically different sizes seldom succeed because of the potential for abuse by the party in the dominant position and the ensuing lack of trust.
- Lack of easy exit strategy. This is usually of greater concern to the private-sector players.
External Constraints
- Legal and regulatory obstacles. Certain legal requirements imposed on public-sector companies may impede the dialogue with private-representatives. Public-sector obligations relating to public tendering, for example, will often cause private-sector players to become suspicious and concerned that confidences exchanged will be shared with the competition. The critical question is: how do you enable a company that has worked hard for a PPP to protect its privileged position when ideas have to be turned into contracts?
- Lack of funds. Public sector entities will rarely contribute working capital for PPP project development.
- Political instability and insecurity of tenure (on the public sector side). PPPs take time to develop. Continuity can be a major challenge when the PPP is faced with changes of government, changes of municipal council, and changes of civil servants.
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