Public-Private Partnership (PPP) is an arrangement where private parties participate in or provide support for the provision of infrastructure. PPP is not the procurement of an asset but the payment of a stream of services under specified terms and conditions.
PPP describes a government service or private business venture which is funded and operated by a partnership of government and one or more private sector company.
KEY CHARACTERISTICS OF PUBLIC-PRIVATE PARTNERSHIPS (PPPs)
- Focus on services
- Risk allocation
FRAMEWORK OF PUBLIC-PRIVATE PARTNERSHIPS (PPPs)
# Project level
Project level PPP deals with the design and operation of infrastructure assets on behalf of the public sector.
# Policy level
Policy level PPP deals with specialized decision making on behalf of the public sector.
REASONS FOR PUBLIC-PRIVATE PARTNERSHIPS (PPPs)
- Financial need because of the budget deficit or large debt, etc.
- Aging or deteriorating Infrastructure
- Search for greater efficiency and creativity
- lack of domestic experience or skills
- Need to educate local contractors while remaining competitive
- Growing demand on public sector services
TYPES OF PUBLIC-PRIVATE PARTNERSHIPS (PPPs)
- Build Operate Transfer (BOT)
- Build Own Operate (BOO)
- Build Own Operate Transfer (BOOT)
- Design Build Finance (DBF)
- Design Build Finance Operate (DBFO)
- Build Lease Transfer (BLT)
- Joint Ventures