Essay M411 : Privatisation and Public-Private Partnerships – Management Assignment Help

Assignment Task:

Task:

Assignment Two (30 credits version)

“The provincial government [of Punjab] has formally approved the construction of proposed Ring Road on public private partnership mode. The City District Government Rawalpindi (CDGR) is going to launch bidding for the mega project for which advertisements would be floated in national newspapers. […] Addressing the meeting, Commissioner Capt (Retd) Muhammad Mehmood said that the proposed Ring Road project has been approved by the Punjab government on public private partnership after reviewing its all technical and economic aspects by the government. He said investors’ conference was held in Rawalpindi in which scores of nations and international investors/construction companies including from China and France expressed their keen interest in the mega project. He said the Punjab government is acquiring land for the project for which Rs 6 billion has also been allocated. He said government has started compensating the landlords and owners in this regard.” (Source: nation.com.pk, accessed on 26th February 2021).

(a) Why do governments launch Public-Private Partnerships (PPPs) for the development of road infrastructure? (40% of the marks)

(b) Risk allocation and guarantees are important components of PPP projects. What are the risks that the Punjab government faces in the Ring Road project, and how they can be prevented or mitigated? (30% of the marks)

(c) How could the Punjab government make an international investor willing to invest in the Ring Road project? (30% of the marks)