(A). Benefits of PPP to the Government (or contracting entity) include the following:

• Real financial benefit reflected in the reduction in initial public costs outlay, and a better utilisation allocation of public funds.
• Risk sharing by government with the private sector in the provision public infrastructure and services.
• Leverage on private resources to achieve government objectives policies and programme encapsulates in the social contracts and companies.
• Accelerating the delivery of needed infrastructure and public servion in time and within budget.
• Ensuring good quality public service and their wider availability.
• Brings efficiency into public sector governance by reducing governmental bureaucracies.
• Increase public assets without direct financial investment as a resu of transfer of residual assets to government.
• Diffusion of private sector innovations and expertise into the public sector.
• Economic growth and increased and wider employment opportunity.

PPP brings the following benefits to the participating private sector firm:

• Provides avenue for investment of ideal private resources and expertise.
• Encourage the private sector to provide innovative design, technology and financing structure.
• Increases profit generation opportunity of the participating firms.
• Increases the level of efficiency through implementation.
• Strategic linkage of public needs to business objective of the firms, creating opportunity for participation on the public sphere.
• Opportunity for business expansion.
• Receives delegated power of the public sector to implement business plans.

PPP also offers some benefits to the community as large and these include:

• Accelerated employment and job creation opportunities.
• Poverty reduction due to increase in public infrastructure that will engender economic growth and development.
• Enhanced public service delivery and facilities to the community.
• Knowledge/technology transfer benefits communities.

(B). Whilst PPP involves the public sector and private sector collaboration in public service delivery, a public-public partnership (PUP) is simply a collaboration between two or more public authorities or non-profit organisations, based on solidarity, to improve the capacity and effectiveness of one partner in providing public services like public water or sanitation services. PUPs are a peer relationship forged around common values and objectives, which exclude profit-seeking. Neither partner expects a commercial profit, directly or indirectly.

Ideally, PUP should be the first option for enhancing the provision of public services and facilities before considering the alternative potential of a PPP. The public sector organisations are expected to work together to identify and realise the potential in achieving improvements in economic and social value. However, many public entities fail to seek collaboration within the sector player but are quick to look outside to the private sector for help. An advantage of PUPs is that they avoid the risks of such PPP: transaction costs, contract failure, renegotiation, the complexities of regulation, commercial opportunism, monopoly pricing, commercial secrecy, currency risk, and lack of public legitimacy.

PUPs have a number of advantages over Public Private Partnerships and some of these are:

• Mutual understanding of public sector objectives and ethos since participating parties are fully knowledgeable of the public sector environment.
• Non-commercial relationship as both entities are not profit making and therefore there will be low risk to contracting entity.
• Transparency and accountability is enhanced since there is not trade secret concerns of the parties.
• Unlimited collaboration among the public sector plays are there are several entities operating in several sectors of the economy.
• Lower transaction costs particularly administrative costs since there is no profit loading.
• Possibility of reinvesting $100%$ of available financial resources into the public sector therefore strengthening the capacity of the sector.
• There is a possibility of long-term gain in capacity-building.
• Develops closer linkage between the government sector and nongovernmental organisation in the provision of public service.