It is common for PPPs contracts to include requirements that address the concerns of a multitude of stakeholders and there is debate at each stage.
PPPs is about good financing model and bankability. Thus, a contract must assign risk properly. The tools for financing keep being developing and adjus�ng. Currently, there is a lot of interest on project bonds for middle-income markets. In places where you have a lot of financial resources, we see par�cipa�on of local banks. In some developing economies, private banks will not be Funding / Business Model
able to finance with long terms, so financing source will differ on leveraging or simply mobilizing organiza�ons like the World Bank’s Interna�onal Finance Corpora�on or others. Guarantees for a project can leverage private lenders and lower the cost of financing, but it is very specific to the country and the structure of the project.
Summary
There are also constraints that delay the successful of PPPs implementa�on in any projects through the possibility of project default, projects completed at a higher cost to the Government and where value for money is not realized. Likewise, understanding the percep�ons of both public and private sectors is cri�cal because successful implementa�on of PPPs requires commitment from both collaborate par�es. This fundamental flexibility presents both opportuni�es and
challenges for ci�es' authority from a funding/ financing outlook. Regardless of the broad recogni�on of the benefits of smart ci�es technology, funding on investment for smart city development are not constantly easy to acquire. A clear vision is necessary for be�er collabora�on and sharing of risks and rewards by both sectors. Public-Private Partnerships (PPPs) are a progressively trendy method for nowadays township development.
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| Malaysia Smart City Outlook 2021 - 2022
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