Access to affordable  and high quality education  is a key to economic growth and development of country.Growing  global demand for improved educational  services like bettering of universities infrastructure and increased  quality control  of education create a complicated and costly challenge for the government. In this regards PPP is an internationally recognized model. It is necessary to separate PPP model from privatization. PPP model implies the distribution of rights between state and business sectors in the strategic spheres which can’t be financed by government – this includes public Universities. PPP is one possible life-cycle oriented approach for the procurement of university buildings to attain economic benefit.

Moreover,  there are number of benefits of  PPP model in higher education: University infrastructure development ( Dorms, Campuses, University hospitals, Labs, schools) beneficial reforms in management;Better quality control of the educational process;Directing funds to the university based research; Making expensive foreign study programs in western countries, more affordable and available for local students;Increasing  number of scholarships;Increasing salaries for the university staff; Invited lectures from different countries.

There are number of cases worldwide where governments, in case of lackfundings, use PPP model for the development of public universities.

The case of Kenyata University is one of the interesting examples: With a student population of over 70,000 against a public dorm capacity. Kenyatta University, which is one of the biggest public schools in Kenya has been facing an accommodation crisis.

In May 2015 The University initiated PPP project with New York-based private equity firm “Integras” to build more Dorms for the campus. As a result, the American company funded the project with US$ 11 million and built new housing facilities with a capacity of 10,000 beds. The initiative is one in a series under a public-private partnership framework approved by Kenya’s Cabinet through which the government is expecting over US$25 billion in private funds to be invested over the coming decade.

In 2001 Washington University school of Medicine used PPP model for building new University hospital and labs. WU partnered with a private company Vulcan.inc and begun construction which lasted for 6 years and cost $US 15 million.

PPP Model is not only beneficial for developing the infrastructure and education quality control  in public universities, but also the presence of a private company will lower risks of instability like of which Tbilisi State University is facing today.

Transferring  Public University management to a private company may help to avoid the type of anxiety that presently takes place in TSU. The Government must monitor the PPP process closely and provide a guarantee that Private sector will prioritize the interest of public.

Elene Nizharadze

PPP Center