ABSTRACT
This chapter deals with financial management issues in the logical sequence of steps of commissioning a partnership, managing a partnership during its lifetime and exiting a partnership. The term public-private partnership (PPP) offers efficiency gains through reduced administration costs, lower direct project costs and improved incentive structures. There may many reasons for entering a public-public partnership rather than a PPP. In the UK's public sector in the 1980s and 1990s, complying with the law would have been a major reason for putting services out to tender. Kappeler and Nemoz's report also showed the UK accounted for 67.1 per cent of all the PPP projects in the EU by number and 52.5 per cent by value. Due diligence is a process of investigating and checking facts prior to the signing of a legal agreement and it crucial step in procurement of any kind of partnership. The terms of the payment mechanism also interlink with the agreed risk allocation between the partners.
