《ppp underlying principles》.pdf

/ijbm International Journal of Business and Management Vol. 7, No. 1; January 2012 Public-Private Partnerships: The Underlining Principles of Infrastructure Investment, Finance and Development Projects Ikechukwu Ikea Chinyere School of Public Administration, Huazhong University of Science Technology Wuhan 430074, China E-mail: honourablerichie@yahoo.co.uk Xiaolin Xu School of Public Administration, Huazhong University of Science Technology Wuhan 430074, China Received: March 31, 2011 Accepted: August 7, 2011 Published: January 1, 2012 doi:10.5539/ijbm.v7n1p109 URL: / 10.5539/ijbm.v7n1p109 Abstract In a lot of countries, paucity and inadequate of resources upon the public investments available for infrastructural projects have led government to request the private sector to go into long-term contractual agreements for the investing and maintenance of capital intensive development projects. This paper analyzes the underlining principles of infrastructure investment, finance and development projects, centering on Public Sector (PS) and Public-Private Partnerships (PPPs). We demonstrated that project investments are suitable for PPP infrastructure projects, since properties and development projects are situated in a precise location. Furthermore, in the scenario of an accurately formulated PPP contract, the higher expenditure of capital and investment are perhaps the compensation for competence, effectiveness and advantages of PPPs. Lastly, we anticipated t