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Public Private Partnership (BE-725)

Prerequisites For this Course:

None

Text Book(s):

  • Yescombe, E. R. (2017). Public-Private Partnerships: Principles of Policy and Finance

Reference Book(s):

  • PPP book by ADB
  • PPP book by World Bank
  • Pakistan PPP Authority Act & Guidelines

Course Description

This course equips students with the theoretical foundations, policy frameworks, and practical case studies surrounding Public-Private Partnerships (PPPs). It explores how governments collaborate with the private sector for infrastructure, health, education, and energy projects. The course emphasizes PPP models, risk-sharing mechanisms, legal contracts, institutional frameworks, financing tools, and PPP evaluation strategies—both globally and in the Pakistani context.

Course Objectives

• Understand theoretical foundations and global evolution of PPPs.
• Analyze various PPP models and their contractual/financial structures.
• Evaluate PPP projects using economic cost-benefit tools.
• Examine legal, regulatory, and governance frameworks in Pakistan and globally.
• Explore challenges and risks involved in PPP projects.

Learning Outcomes

  • Design a PPP model for infrastructure or public service delivery.
  • Evaluate existing PPPs based on economic, legal, and risk metrics.
  • Understand key components of PPP contracts and institutional frameworks.
  • Critically assess the role of PPP in development economics and governance.

Lecture Plan

Session Topic Brief Summary
1 Introduction to PPP Origins, need, and global trends. Why PPPs matter for developing countries.
2 The Economics of Public Goods & Market Failure Link between public goods, externalities, and rationale for PPPs.
3 PPP Models and Typologies BOT, BOOT, DBFO, Service Contracts, Concessions – explained with examples.
4 Risk Allocation in PPPs How risk is identified, priced, transferred or shared in PPPs.
5 Legal & Institutional Framework Overview of legal structures in Pakistan, global best practices.
6 Project Appraisal and Feasibility Techniques including financial viability, economic cost-benefit, and VFM.
7 PPP Financing Mechanisms Debt-equity structures, viability gap funding, government guarantees.
8 Midterm Exam
9 Contract Design and Negotiation Understanding terms, renegotiation traps, and enforceability.
10 Procurement, Tendering & Transparency Process flow, prequalification, bidding stages, ethical concerns.
11 Monitoring, Regulation & Evaluation Post-award oversight, KPIs, compliance audits.
12 Role of IFIs and Donors Involvement of ADB, World Bank, DFIs in PPP structuring and guarantees.
13 PPPs in Infrastructure (Roads, Energy) Sectoral deep dive with Pakistani case examples.
14 PPPs in Social Sectors (Health, Education) Innovative PPP models in human development – pros and cons.
15 Common Pitfalls & Failed PPPs Case studies of failures due to poor risk allocation or corruption.
16 Future of PPPs in Pakistan Reform agenda, climate-smart PPPs, AI/data-enabled PPPs, final wrap-up.