Politicians and public authorities are currently faced with the issue of how to keep their urban areas liveable and accessible. What has already happened to metropolises, is now threatening to occur in medium-sized cities as well: traffic congestion and the infringement of environmental standards.
Light rail connections can assist in reversing this trend. They cause less pollution and occupy less space than road traffic. However, it usually takes a long time before such connections are operational.
The benefits of public-private partnership in light rail
In a PPP project the authority and the private party share responsibilities. The risks are borne proportionately, while aspirations are shared. The aim is to resolve an urgent traffic problem as quickly as possibly by means of sustainable solutions.
| The authority divides the total task: planning, design, construction, management, maintenance and operation. For each consecutive phase, they conclude contracts with engineering firms, contractors, infrastructure managers and transport companies. |
The authority defines its wishes and requirements clearly and functionally. The private party develops an integrated technical and commercially viable solution. |
| The authority is responsible for interface coordination and bears the inherent risks, even though they are not generally the party that is best equipped to manage such risks. |
The private party bears the responsibility for the interfaces between technical systems and the various phases of the development process. |
The government authority has to invest, while government budgeting structures do not make matters any easier. It can take quite some time to get such projects up and running.
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The best possible solution will be realised, as the private party receives payment in accordance with the performance it delivers in the maintenance and operating phases. |
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