What is PPP?

Public-Private Partnership (PPP) is a contractual arrangement between the public and private entities that works to provide a public service or infrastructure project. This partnership allows the public and private sectors to combine their resources, experience, and expertise to pursue a common goal. In a PPP, the government provides the private sector with incentives or tax credits to build and maintain an infrastructure or service project, such as a highway or a sewage system, in exchange for money or discounted services.

Why is PPP important?

PPP is an important tool for governments around the world to leverage their resources and capability to achieve better infrastructure and service delivery. Through these arrangements, governments can access private sector expertise and financing to deliver public infrastructure and services more efficiently, effectively and affordably. Furthermore, PPPs also allow governments to delegate or transfer the construction and operations and maintenance risks to the private sector in order for the public sector to focus its resources on other strategic objectives.

How can PPPs benefit the community?

PPP can bring economic, social and environmental benefits to the community. For example, public-private partnerships can provide services and facilities at a faster rate than traditional alternatives and can generate economic investment and community development. PPPs also have the potential to generate more cost-effective delivery of infrastructure and services compared to government-delivered projects. On the social side, PPPs can offer citizens more and better-quality services, while also delivering increased social inclusion. In addition, PPPs can help protect the environment, through greater efficiency in the use of resources, the development of sustainable services, and the diffusion of knowledge and the transfer of best practice.