Yardstick International College

Department of Management
Post Graduate program (MBA Online)

Marketing Management
Assignment 02

ARTICLE REVIEW on: - Public-Private Partnership Model opportunities, limitations and

Risks in Croatian Public Project Financing

Submitted To: Muhammed Kassaw (Phd)

Submitted By: Haile Yohannes

ID no: - Mao/1351/13

Mar, 2022

Addis Abeba, Ethiopia

Table of Contents

1. Abstract...............................................................................................................................................1
2. Introduction.........................................................................................................................................2
2.1 Defining the Problem.........................................................................................................................2
2.1.2Strength...........................................................................................................................................2
2.1.3 Weaknesses....................................................................................................................................3
3. Conclusion...........................................................................................................................................3
3. Reference............................................................................................................................................4
 1. Abstract
The Author has clearly pointed out the Current status of Development of Basic Institutions like
infrastructural and public facilities, she underlined that these improvements have dynamically
impacted the Economic Growth of the Developing countries as well as the developed ones. One
main gab is that ‘Government Budgetary allowances” (GBA) happens to be shortage in coping
with the demand needs. In there she suggests an alternative solution and that is “financing the
facilities of public inters are private investment. Through a channel of Contract agreements, that
is known as “Public -Private partnership (PPP). The author defines PPP as “A public-private
partnership represents a contract agreement between a properly authorized local, regional or state
authority and a private partner with a clear share of responsibilities and risks with the purpose of
fulfilling a given public need. Further, the opinion of the responsible Croatian authorities related
to the possibilities of implementing the PPP models in regard with the implementation
of public facility project is presented. (Car-Pušiü, 2014)
 2. Introduction
Here in the introduction the author explains that Private Capital Investment in the public sector is
just a mode, while there are different models that countries in the world, and at the same time
countries in the world are working hard or attempting to tackle down a great deal of financial
demanding of public needs. So that cooperation is referred as a public-private partnership and
done through a variety of different models. Basically, Croatia has by means of legal regulations
tried to simplify the investment of the private capital in the public sector.

2.1 Defining the Problem

Under this section she is trying to define the main “problem”.
Taking into account the character of the PPP, which can have a number of advantages over the
traditional procurement model, primarily taking into consideration the financial risk acceptance
as well as the implementation, maintenance and finalization by the private investor, the public
sector authority especially has to be cautious of the risk which can occur in a particular manner
at specific stages of service life.

This paper primarily deals with the potential risks in the public infrastructure sector facilities
such as hospitals, health institutions, legislative facilities,
etc. Establishment and adoption of adequate procedures, methods and measures which enable the
public sector authority to face the risks are considered to be an obligatory condition in rational
management of public funds. Experience of investing public funds for meeting public needs, so
far, has at times, shown inadequate knowledge and even insufficient effort to rationally and
conscientiously manage public funds. Problems which sometimes occur in traditional investment
models can have serious negative financial long-term effects in PPP. Both public sector
authorities and government bodies responsible for supervising public fund expenditure have to
be aware of these possible problems. (Car-Pušiü, 2014)

2.1.2 Strength
Below are the strengthens of this article there could be more but these are the ones I have
observed through my comprehension.
 Within the Entire Article the author has used Academic language
 The language tone used happens to be flexible and relevant
 Free from emotion and bias.
 The Author quoted an accurate, relevant and currency data
 There is no Duplication and Repeat.
 She highlighted the different, variety models of PPP.

2.1.3 Weaknesses
Well one of the weakness of this article could be that: The title of the Article is not clear and
accurate because there is acronym, and people who are not familiar with “PPP” (Public-Private
Partnership) will confuse about the Title itself, let alone understanding it. Another main
important factor is that in the Abstract the researcher does not clearly point out the overview
of the Research problem, as well as Sample, Methodology, findings and Recommendations.
Although she stated her Research Methods, it is not clearly stated, meaning that she did not
deeply and in detail demonstrate her Research design.

3. Conclusion
Here the author concludes that the Public-Private Partnership model greatly provides an
alternative of meeting the public needs but at the same time has its own risks that every public
entity or developer should be aware of. Whatever the aware risks are still there are a big deal
of “conceal” risk which, if not timely discovered and solved can create huge impact and
sequences in the form of utilization, functionality reduction, cost rise and other utilization
issues. And finally she suggests that the perfect alternative answer of the mentioned problems
happens to be “ to do every possible, primarily in the preparation stage by clearly defining he
design task, the technical, functional and energy parameters of the structure, and then in the
construction stage by active monitoring in order to avoid problem occurrence because it’s
consequences, regardless of the risk allocation, will definitely be suffered by the public
developer, that is, the structure user”.
 4. Reference
Birdsall &Rodrik (2005). How to Help Poor countries and avoid risk (15) 84 No.4

Jofferey (2005) Risk awarness, Harvard University Press, 1984, p. 43.

Elgably (2008) Economic Growth Under developed countries and Risk assessment.

The Economics of Happiness, 2011 (Video Documentary) narrated by John Page.

Besley and Cord (eds.) (2007), Delivering on the Promise of Pro-Poor Growth: Insights and
Lessons from Country Experiences, World Bank.

Ndulu et al (2007), Challenges of African Growth and Risk Models, World Bank, pg 3

World Bank (2005) Public infrastructure: Learning from a Decade of Reform