What is a PPP?

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.

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