Public–Private Partnership (PPP)
What is Public–Private Partnership (PPP)?
A public-private partnership (PPP) is a cooperation between the public sector and the private sector for the purpose of delivering a public service or financing a public infrastructure project. PPPs are a form of collaboration that allows the public sector to leverage private sector resources, expertise, and financing to deliver public services or infrastructure projects.
In a PPP, the public sector typically provides the policy direction, oversight, and regulatory framework, while the private sector is responsible for designing, building, financing, operating, and maintaining the project. The private sector is also typically responsible for any associated risk.
PPPs can take many different forms, including design-build-finance-operate (DBFO) arrangements, where the private sector is responsible for designing, building, and financing the project, and then operating it for a specified period of time. Another common form is build-operate-transfer (BOT), where the private sector builds and operates the project, and then transfers ownership to the public sector after a specified period of time.
PPPs can be used to deliver a wide range of public services and infrastructure projects, including transportation, health care, education, and social housing. They can be an effective way to deliver public services and infrastructure projects, as they can bring private sector expertise, efficiency, and innovation to the project. However, PPPs also have their challenges, including the need to ensure that the public interest is protected and that the private sector is held accountable for delivering on its commitments.