The Hidden Costs of Public-Private Partnerships: A Critical Analysis of Risk Distribution in Government Contracts

Authors

  • Solomon Kyalo Mutangili

DOI:

https://doi.org/10.53819/81018102t2455

Abstract

This review examines "The Hidden Costs of Public-Private Partnerships: A Critical Analysis of Risk Distribution in Government Contracts," which provides a comprehensive analysis of the complexities and challenges inherent in public-private partnerships (PPPs). The book critically evaluates the assumption that PPPs offer superior efficiency compared to traditional government procurement models, revealing how poorly structured contracts often result in significant risks being shifted to public entities.The author examines multiple case studies across jurisdictions, demonstrating how political and economic pressures influence PPP negotiations, often leading to optimistic cost estimates and unrealistic revenue projections. The analysis reveals how the appeal of off-balance-sheet financing frequently motivates governments to prioritize short-term fiscal appearances over long-term sustainability. The book delves into the societal implications of PPPs, particularly their impact on equity and access to essential services. It demonstrates how privatization through PPPs can exacerbate socioeconomic disparities, with user fees and cost-recovery mechanisms disproportionately affecting low-income populations. The author advocates for reforms including enhanced stakeholder engagement, improved contract transparency, and rigorous risk assessment methodologies. The work also explores global trends shaping PPP evolution, examining how international financial institutions influence PPP frameworks, often imposing standardized approaches that fail to consider local contexts. Through comparative studies of PPP frameworks in both developed and developing countries, the book highlights the importance of tailoring PPP policies to specific economic, social, and institutional conditions. The author concludes by proposing innovative solutions, including the use of technology and data analytics for better contract management, and emphasizes the need for international cooperation in improving PPP practices. The book serves as both a critique of current PPP practices and a roadmap for creating more equitable and sustainable approaches to public service delivery.

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Published

2025-01-22

How to Cite

Mutangili, S. K. (2025). The Hidden Costs of Public-Private Partnerships: A Critical Analysis of Risk Distribution in Government Contracts. Journal of Procurement & Supply Chain, 9(1), 1–8. https://doi.org/10.53819/81018102t2455

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