Analysis of the utilisation of public private partnerships in public financial management

Abstract

This article explains the role and purpose of Public Private Partnerships (PPP) in relation with public financial management. With the establishment of a PPP it is assumed that the private sector will carry all the risks. In the utilisation of the PPP system government should evaluate, monitor and manage such risks in association with the PPP. In this regard it will depend on the administrative and managerial skills of the public official. Furthermore, in terms of the budgeting systems care should be taken that the project life must be in line with the departmental budget and other financial systems. This approach will ensure that benchmarking and comparisons are possible to determine value-for-money.