Challenge II: Lack of Partner Confidence and Trust
Although the lack of early development capital is the most significant obstacle PPPs face, we also have identified an additional barrier: a lack of trust and confidence between potential PPP partners.
- The public sector fears that private finance will extract excessive short-term-oriented PPP returns, limit transparency, and tip the risk allocation in their favor with the ultimate user and taxpayers eventually footing the bill.
- The private sector fears local government wavering or capricious political forces that result in variations in project scope, or even abandonment, all at significant cost to private finance.
YRC Solution II: YRC as the Infrastructure Catalyst
We utilize our unique combination of financial expertise, infrastructure experience, and local knowledge to act as an impartial and independent third party, facilitating the agreement of public and private partners in PPPs.
- Assisting the public sector: We represent the best interests of the public sector, ensuring financial transparency, respect for public procurement principles, and limitations on the use of public moneys, resulting in competitive user charges consistent with allowing private finance a fair market return on their investment.
- Assisting private finance: We stimulate public buy-in and encourage limited government “skin-in-the game” via cash, rights of way, permits, development agreements, or other valuable inputs, allowing private finance to plan without fear of major unanticipated changes.
We act in the role of infrastructure catalyst – making infrastructure happen.