Delivering Countywide Cost-Effective and Better Education Services: The Models of Public Private Partnership (PPP)
Technics Technologies Education Management (ISSN 1840-1503), Vol. 5(4), pp. 875-880, 2010
8 Pages Posted: 28 Mar 2017
Date Written: 2010
Like other social services, education is one of the essential services that government is obliged to arrange for its country people, but to meet such increasing demand of educational infrastructures, government alone faces hues difficulties in capital investment especially in the developing countries. So, for developing the education infrastructure and providing quality education programmes, Public Private Partnership (PPP) has been proven an advanced tool for government in many of the countries. However, private investors may not have much interest for a typical PPP deal in education sector, because government provides the education services for free at the primary and secondary level. Therefore to make the PPP deal attractive to private investors, this paper suggests two approaches of PPP funding under the Built Operate and Transfer (BOT) models. Both the Viability Gap Funding (VGF) and Annuity Payment provide the investors the required subsidy from the government through payment in the construction or operation phase to make the project viable. This allows private investors to make revenue at expected level and government to save of hues up-front investments. Moreover, among different types of PPP models, the suggested types - BOT - also ensures the quality of education programmes.
Keywords: Education infrastructure, PPP models, BT, BOT, BLT, VGF, Annuity Payment
Suggested Citation: Suggested Citation