Public precurement and (ppt) + (ppp) Essay Example | Topics and Well Written Essays - 1750 words

Public precurement and (ppt) + (ppp) - Essay ExampleThe overt department just makes monthly repayments for capital utilise and bears the on-going service costs. The major objective of PFI is to increase efficient speech communication of public go and transfer guess to the private enterprises. But currently, it has come under lot of controversy for excessive payments, bribery, corruption and poor comfort for money. The paper would analyse PFI for managerial effectiveness, in operation(p) efficiency and cost effectiveness for public service delivery and asses its viability for best value for money. Analysis Public empyrean is showing significant shift in its operational areas towards privatization regarding public procurements of works, goods and services with emphasis on cost saving and increasing efficiency. The concept had originated in the positive nations which were getting concerned with large amounts of spending from the public funds for public utility services. It had led to denounce cases of irregularities related to public funding including lack of commitment, transparency and efficiency issues (OECD, 2007). The reforms therefore had become necessary. An effective public procurement through PFI was a good option especially when relationship is forged through middling and competitive auction bidding (Audit commission, 2001). ... PFI is improved form of public procurement system because of its unique fabric as public private partnership. Moreover, private finance is sought within the realms of a public environment, touch by a series of state defined legal, administrative, political, and management networks. Like private sector, it ensures that the procurement of goods, services and works is optimally efficient and effective, and results in best value for money (Deloitte, 2009). But it differs from the private sector in the sense that it is not profit oriented. Indeed, these emerge as vital issues that require constant monitoring, regulation, and audited account to keep the process corruption free. In the traditional procurement system, the spending department or frame finalizes the project and budget and thereafter sends proposal to the treasury for lend (Whitfield, 2001). After approval the department gets the farseeing term loan at very low interest rates as they are sensed to be low risk borrowers with government not expecting to fail or default in its repayments (Grout, 1997). The loan sanction for the project is a long drawn process that each public department has to assume for any proposed work in the public area. Apart from the highly fractious procedures of finance, the operation, management and risks are enormously critical elements that become difficult to manage in the long run with the same efficiency and flavor (Hood et al., 2006). Indeed, the changing socio-economic and political environment makes the assorted projects quite risky. Most importantly, getting the state treasuries to fund the various public projects would a massive burden on it and which could