what is a ppp

PPP stands for Public-Private Partnership, which is a long-term arrangement between a government and private sector institutions. PPPs involve collaboration between a government agency and a private-sector company that can be used to finance, build, and maintain public assets or services. PPPs can be found in infrastructure projects such as building toll roads and highways. PPPs are designed to share risk and develop innovation, but critics decry their higher costs and issues of accountability. There is no consensus about how to define a PPP, as the term can cover hundreds of different types of long-term contracts with a wide range of risk allocations, funding arrangements, and transparency requirements. PPPs have been used in various sectors, including transportation, energy, water, and healthcare. The advantage of a PPP is that the management skills and financial acumen of private businesses could create better value for money for taxpayers when proper cooperative arrangements between the public and private sectors are used.