Salang Tunnel

1. With reference to the case study in the article , distinguish between the objectives of the private sector and the public sector. 

Public sector’s objectives are in the service of community and citizens of a country. If the cleaning of roads and trashes is owned by a government and it has put a cleaning trucks in position, even the government doesn’t gain anything, it will still continue to do this job. Unlikely, the private sector mostly sees at its profits and gains, so it will never do something like this.

Another example of this would be: If the transport system is owned by the government and it is running a bus service to an interior village and it is not getting enough customers, the government might still continue it as its main objective is to provide service and not to maximise profits. Whereas private sectors business give priority to profits and may end the service if it does not find it profitable to run the service.^[1]

Also in our example of Salang Tunnel a private business that will fond 500 million dollars will wait a very big profit but unfortunately there is no gaining for a private business in a situation like this.

Another important point is that private sector need to have a low cost so it takes less workers but public sector wants to open new jobs so people can work.

1. Discuss the advantages and disadvantages of the proposed public–private partnership for the construction and operation of the Salang Tunnel.

If there would be a partnership between two sectors for the Salang Tunnel, the work done would be more efficient and with a better solution. We already know that private sectors give more efficient prducts and services than the public sector. It can be seen more on health service.

As the tunnel is in bad conditions and full of poisonous gas it needs an imidiate solution. Nothing but the partnership would make on time the tunnel as it is in danger, and it is the main road for many imports and exports.

For a government like that of Afghanistan 1 million dollars is a very high cost so if it will be shared both sectors will benefit for this. The impossibilities of the Afghanistan government come mostly from the war with talebans.

One of the advantages is that the taxes for the tunnel would be lower.