Finance PPP opportunity
FINAL COURSE PROJECT
The Goal: The goal of the assignment is to create a 10-12-page argumentative (or position) essay (not including the cover page and the reference pages)
utilizing at least eight selected peer-reviewed journal articles.
The Writing Prompt: You will examine the use of public/private partnerships (PPPs) in aiding an organization with a problem (see https://t.ly/JVG6Y for
information on PPPs and https://t.ly/gjR16 for examples of PPPs). Further, you will argue either for or against using a PPP to address a problem.
Find a problem open to a PPP opportunity: Search the Web and find a problem that may benefit from PPP financing—the problem should be able to use a mix
of private (debt, notes, and cash) and public financing (bonds). If you need inspiration for finding a problem, then remember that https://t.ly/gjR16 offers
examples of PPPs.
Think about the PPP opportunity: Using what you learned in this course, create a description of the proposed investment opportunity, the goals and mission
of the opportunity, the financial impact of the opportunity, the financial considerations for all the stakeholders, and a discussion of the private and public
funding mechanisms. Further, identify the opportunity’s assumptions, risk factors, and microeconomic and macroeconomic factors. Remember to include
estimates of the cost of capital and total funding required. If possible, estimate the WACC for public and private financings.
Take a position: Establish whether you wish to argue for or against the PPP opportunity.
Sample Solution
I argue in favor of the use of public/private partnerships (PPPs) to address a problem. PPPs combine the resources and expertise of both public and private entities, which makes them an ideal solution for
tackling complex problems that require multiple layers of funding and expertise. Using PPPs opens up access to a wider range of resources, allowing organizations to tap into sources they might not have had access to before. Furthermore, using PPPs allows an organization to gain access to new ways of financing projects that are often more cost-effective than traditional methods. The cooperation between public and private entities also promotes efficiency by streamlining processes across both sectors and providing opportunities for collaboration on problem-solving initiatives. Additionally, due to their complexity, PPP projects tend to be evaluated from different angles by different stakeholders – something that is beneficial when it comes to addressing difficult issues with multiple moving parts. Finally, utilizing a PPP approach minimizes risk since it reduces the reliance on one sector or another; if there is a lack of progress within one sector, then other partners are still able contribute towards finding solutions or mitigating losses. For these reasons I believe that utilizing public/private partnerships is an effective way for organizations dealing with complex problems.