Why do PPP-projects fail?

Public Private Partnership, or PPP, refers to a contractual arrangement between a public authority and a private sector entity, under which the private sector party is committed to both construct and maintain a building, i.e. a school, hospital etc., for a certain period of time, typically for 15-25 years. The private sector party usually is a consortium made up of a building contractor, a maintenance company and bank lender.

Many times the parties to a PPP have great expectations of the project. However, quite often these projects also tend to fail even if they are carefully planned through an appropriate allocation of risk. Most of PPP-projects fail, because they dramatically exceed the budget. We have a new approach to offer to solve this problem; an alliance between the parties.

We assist public authorities, building contractors, maintenance companies and bank lenders to complete PPP- projects in Europe. For further information, please contact our CEO Mr. Valtteri Nieminen + 358 40 7771 784, valtteri.nieminen@hankintajuristit.fi or Partner, Attorney at Law Ms. Marita Tapola + 358 44 5566 333, marita.tapola@hankintajuristit.fi

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