The perils of PPP
| AN OUTSIDERS VIEW |
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| Ken Fuller |
In September, Alliance of Concerned Teachers Rep. Antonio Tinio questioned the practicality of the Philippines engaging in public-private partnerships (PPPs) as they would become a burden on taxpayers. The UK parliament, he said, had concluded that the system is inefficient.
Let’s take a look at what’s happened in the UK. The private finance initiative (PFI) scheme was introduced by the Conservative government of John Major in 1992, but was pursued enthusiastically by the Labour governments of 1997-2010. A stark indication that the scheme was less than perfect came in 2007, with the collapse of Metronet.
Metronet was the government’s PPP partner, established as a PFI, contracted to maintain nine lines on the London Underground. When it went into liquidation, it left the taxpayer with a bill of up to £410 million (currently, £1 = P67), the transport department having ignored advice by the National Audit Office to adopt a hands-on oversight approach..... MORE
Source: The Daily Tribune
URL: http://www.tribuneonline.org/commentary/20111004com5.html
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