Public Private Partnerships (PPPs) is a term that is widely used but often not clearly understood. Typically, PPPs cover the gambit from “outsourcing”, to traditional public-private partnerships, to privatization. In each case, it represents a means to apply the resources of the private-sector in meeting the needs of the public.

A public-private partnership (PPP) is an agreement between a government and/ or its agency and a private sector entity that allows for greater private sector participation in the delivery of public infrastructure projects. PPP models allow transfer of associated project risks to the parties best positioned to manage it.

complex, and as such require a detailed understanding of their design and implementation features. There are many PPP structures with varying elements. However, they typically share the following characteristics:

1. Long-term contractual arrangement

2. Public Sector retains strategic control over service delivery

3. Private Sector contractor takes full responsibility for design, delivery and operations

4. Private Sector contractor accepts the responsibilities and risks of delivering the project

5. Payments are made by the public sector partner (or the public) for performance and availability and in some cases usage

6. Projects are designed to encourage the most efficient use of public sector resources

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