The Road and Map Geek
There are dynamic implications, too: In the PPP model where the construction company will be responsible for the maintenance for 15-30 years after the completion, there is a substantial incentive to make high quality. This alone is likely to compensate the extra cost of the model. In addition, outsourcing the financial arrangements to the service provider will save the the government labor cost.This is generally true, but the biggest advantage of PPP is that it is able to deliver large projects in a short amount of time. This is where conventional government projects fail to deliver.
I see it like a house construction. You take out a mortgage to be able to buy a house and not set € 500 per month apart for construction so that in 30 years, your house will finally be finished.
Germany is a good example, where there is a striking difference between PPP projects and conventional government projects. It means that they can build 50 kilometers of motorway in 4 years, instead of sections of 4 kilometers over a period of 50 years. This is hugely beneficial to society, despite the somewhat higher cost of PPPs.
It's a cost-benefit consideration really. Do you accept the higher cost to have higher benefits? Do you want to wait a generation or more until the promised product is complete?