DECISION-SUPPORT METHODOLOGY FOR PLANNING AND EVALUATING PUBLIC-PRIVATE PARTNERSHIPS

Governments at all levels have increasingly turned to public-private partnerships (PPP) as a source of alternative financing for needed public facilities, in turn providing private developers with new markets on government land for investment and profit. Government agencies need a structured, objective methodology to plan, evaluate, and implement successful PPP projects. A structured methodology, including quantitative simulation models for financial planning, evaluation, and cost justification, is presented and demonstrated. This decision-support system methodology will minimize the two primary decision errors in public-private partnerships-accepting unsound or inferior projects and rejecting sound or superior projects.