Public Private Partnership
A Public Private Partnership (PPP) is a service contract between the public and the private sector where the government pays the private sector to deliver infrastructure and related services over the long-term.
PPPs typically make the private sector parties who build public infrastructure financially responsible for its condition and performance throughout the asset’s lifetime.
In a typical PPP project the government would:
Engage one party, usually a consortium of private businesses that come together to form a special purpose vehicle, to design, finance, construct, maintain and, in some cases operate the facility
Make payments only after the facility has commenced operations
Provide payments over the term of the contract based on services delivered against the achievement of key performance indicators – with these payments being at risk for non-performance.