Public-private partnerships (PPP) is an umbrella term covering various types of collaboration between the public and private sectors, where the public sector plays a key role as a purchaser of services.
PPP construction work and investing is important for many construction corporate organisations. For some, a PPP strategy — such as developing then selling investment stakes and retaining long-term maintenance contracts — is central to their business model. Industry players at all levels can be involved, from the biggest companies heading consortia to small, local sub-contractors.
While PPP projects are a very important source of construction and investment income for many of the largest constructors, they can also be risky. For example, financial pressures can often arise as there is often a time-lag between bidding for a PPP project and receiving earnings. Project over-runs are also common and can present a significant risk.
How PricewaterhouseCoopers can help you
PwC’s construction & engineering professionals can help your company with a wide range of PPP-related challenges. Our infrastructure, government & utilities specialists provide advice to corporate organisations and government procurement agencies on matters related to financial and commercial structuring.
Our dispute analysis & investigation team can help you deal with your contractual disputes and forensic investigations.
Our tax professionals provide advice to bidders, shareholders, private finance initiative (PFI) companies, investment funds and public authorities on issues such as corporate tax for SPVs (private companies that have been set up with the specific and sole objective of carrying out a given project), capital allowances, stamp duty, VAT and investment fund tax advice.
Our assurance and advisory specialists provide audits of SPVs; specialist accounting advice to shareholders, PFI companies and public authorities; and transaction strategy advice to shareholders, financial investors and PFI companies.
