When the private sector is involved, doesn that mean that citizens will eventually have to pay more for services?
There is more than ample evidence to show that public-private partnerships result in a higher quality of services while holding the line on costs. Private-sector partners are able to practice cost efficiencies to hold down expenditures, while also taking advantage of additional revenue streams. In cases where there have been rate or tax increases, it came as a result of upgrading or expanding systems — and under the terms of the contract signed between the public and private partners. Often, major projects can be undertaken at little or no cost to the public. For example, in the public-private partnership that rebuilt Washington, D.C.’s landmark Union Station, the multi-million dollar improvements were completed without using a dime of taxpayer money. In part, the private contractor is recouping costs from rents paid by retail shops in the facility.
Related Questions
- Should IFC be involved in Tata Mundra, as there are several other private and public sector supercritical plants planned for development in the next five years?
- Can a healthcare provider be reimbursed for indirect services? Do Medicare, Medicaid, or private insurance pay for indirect services?
- When the private sector is involved, doesn that mean that citizens will eventually have to pay more for services?
