Technical and economic performance
One of the biggest contributions of these Public-Private Partnerships is the ability to control costs and meet deadlines during the construction of large-scale infrastructure projects.
The Public-Private Partnership model has provided the French rail sector with an unprecedented boost. In 2017, in the span of just a few months, three new lines went into operation on-time and on-budget.
In 2017, AGIFI commissioned a study from Ernst and Young that showed the effectiveness of private project management and sought to explain its success. Three aspects of Public-Private Partnerships were highlighted.
Meeting deadlines
70% of the projects under private project management met the initial deadlines, compared to 30% of publicly managed projects.
Delivering on-budget
70% of projects under public project management are within budget, compared to less than 20% under public project management.
Cost control
When overruns do occur, they were lower under private project management (less than 5%) compared to nearly 20% under public project management.
Because of its long-term commitment to the project (up to 50 years), the private partner that manages the infrastructure can plan out the required maintenance operations starting in the design phase, optimising costs and providing a certain level of sustainability. This long-term vision ensures effective management of public funding.
Private managers are also subject to strict and detailed monitoring of their performance, which is directly linked to their earnings. As part of the agreements they sign, private partners are encouraged to meet all the performance commitments included in the agreement.
The Public-Private Partnership, an effective tool in budgetary terms
Public-Private Partnership:
optimisation of all project phases
Define needs
Private partners obtain financing and ensure the project is designed correctly and blends seamlessly into its environment. They are careful to clearly define the functional programme and the sharing of responsibilities.
Ensure maintenance
A strong focus on safety and infrastructure performance, as well as optimisation. Public-Private Partnerships are governed by strict performance criteria, meaning infrastructure maintenance is held to the highest standards.
Oversee execution
A focus on the quality, timely delivery, and eco-friendliness of projects. Private partners are committed to staying within budget and meeting equipment delivery deadlines.