7/21/2019 Public Private Partnership Criteria for Judging Effectiveness

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+eveloper# encourage good service provision and sufficient asset maintenance and

capital investment.

!)  Efficiency: 0fficiency has t%o aspects. Internal efficiency is in terms of operations and

management of an activity to achieve maximum output for the least cost.  External 

efficiency is in terms of achieving best results in terms of objectives of the actively for 

the least cost.

The efficient use of scarce public resources is a critical challenge for governments1and

one in %hich many governments fall far short of goals. The reason is that the public

sector typically has fe% or no incentives for efficiency structured into its organi'ation

and processes and is thus poorly positioned to efficiently build and operate

infrastructure.

") E#uity: 2airness and impartiality is to%ards all concerned# based on the principle of 

evenhanded dealing. 0quity implies giving as much advantage# consideration# or latitude

to one party as it is given to another. !long %ith economy# effectiveness# and efficiency#

0quity is essential for ensuring that extent and costs of funds# goods and services  are

fairly divided among their recipients. (o# equity is an elaboration of the universal criteria

in terms of ensuring acceptable quality of service for all. (haring of cost equitability

%hen a cost is necessary to be imposed and special attention to groups disadvantaged

due to historical# economic and cultural gro%th.