State Government of Victoria, Australia has been a pioneer in the use of the private sector in providing public infrastructure through a "public-private partnership" (PPP). The programs PPP government contracts with a private company, not only to build an object, but to manage it through the expected life as well. PPPs are used for "social" infrastructure, such as courthouses and hospitals, as well as the "economic" infrastructure such as toll roads and public transport. The Ministry of Finance requires that agencies implement PPP show that PPP would save money compared to traditional procurement options. But critics argue that the guidelines of the Treasury for the cost of such comparisons were flawed. Debate, questions were raised about how to compare the risks assumed by the Government under the various procurement options and the difference in risk should be reflected in interest rates. HKS Case Number 1822.0 "Hide
by Ian Davidoff, Jose Gomez-Ibanez 23 pages. Publication Date: 04 Oct 2006. Prod. #: HKS095-PDF-ENG
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