By Stephen J. Bailey, Pekka Valkama, Ari-Veikko Anttiroiko
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Extra resources for Innovations in Financing Public Services: Country Case Studies
The PPI system can mobilise more capital than the government can do alone by eliciting extra capital to invest in PPI projects from pension funds as well as the private sector. PPI will not only help the circular flow of money in the economy by inviting private capital which is looking for investment opportun-ities into public projects, but will also enhance economic growth and competitiveness. The above rationale can be a reality when PPIs are properly formulated and managed. Thus the Korean government has endeavoured to establish a well functioning PPI system.
Instead, it outlines the process for ensuring the funding requirements are met: ● ● ● Local authorities develop school estate management plans, which set out realistic and prioritised options for improvement. These will provide a basis for future decisions at a local level, and information and insights across the school estate at a national level. The Scottish government takes national decisions, taking account of wider priorities and available resources, and informed by the picture of the school estate identified in local authorities’ plans.
It is often claimed that PPI projects have a lower likelihood of construction delays or cost overruns since the contract terms and conditions are fixed before work begins and the private company in the project bears most of the risks of construction delays and additional costs. The private company maintains and operates the newly constructed facilities for 10–30 years. Therefore, it undertakes construction with a long-term perspective, starting with the design stage. Finally, PPI provides a stable and long-term investment opportunity for the private sector.