Public-Private Partnerships in Angola

The advantages of contracting in the form of a PPP may include:

• Construction and operation of infrastructures that could not otherwise be purchased from public budgets due to lack of funds or restrictions and limitations on incurring debt;
• Access to various forms of financing and liquidity funds available to the private sector for these projects;
• Innovation and price competitiveness in the private sector;
• Advantages arising from efficiency and effectiveness gains thanks to management skills and the use of private sector technical expertise;
• Risks are attributed to the party best able to manage them, in the context of the country;
• Greater transparency, since the qualitative and quantitative information that justifies the PPP must be publicized and sufficient to demonstrate the advantages of the PPP, from a cost-benefit and Value for Money (VfM) perspective, i.e. the verification of gains in public resources and services resulting from the choice of this form of contracting must be evidenced and publicized;
• Gains in the use of public resources from a cost-benefit perspective can be measured in terms of cost, price, quality, quantity, lead times and other factors that influence the decision to delegate public services to the private sector, rather than internalizing these services through the public administration structure;
• Greater emphasis on specifying the intended results from the construction of an infrastructure asset to the provision of a service, including the maintenance of the infrastructure asset throughout its operational life and the level of user satisfaction and public interest.