A new report by Baker & Mckenzie, Public-Private Partnerships - evolution or revolution? highlights calls for changes to the PPP model and suggestions for improvement.
Led by partners Ken Gray and Geoff Wood, the report reveals that 62 per cent of respondents were happy with their last PPP, “but it's clear challenges for the market remain”.
"There are three key issues raised by our survey respondents that really stand out in our report. The first is around the need for a greater pipeline of opportunities. Second, bidding processes are overly complex and far too expensive,” said Wood.
He said there is strong support from both the public and private sectors to introduce a centralised government approvals mechanism for PPPs in each jurisdiction.
Gray added that the Government and market participants need to identify solutions.
Australian public private partnerships have been the subject of heated debate in the past. Labeled a cash cow for the private sector and a way for governments to move debt, the model has received criticism across the board.
The firm surveyed a broad range of industry players from both government and private sectors who have significant and recent experience working on PPPs.
"The overarching objective must be to ensure that the PPP model continues to meet the goals of all participants so critical infrastructure is delivered in a manner that provides value for money for the public and private sectors, whilst allocating risk appropriately and providing incentive for the private sector to provide the efficiency and innovation it is best placed to deliver," said Gray.