what is ppp model

A Public-Private Partnership (PPP) is a long-term arrangement between a government and private sector institutions for the purpose of delivering a project or service traditionally provided by the public sector. PPPs involve collaboration between a government agency and a private-sector company that can be used to finance, build, and manage infrastructure projects such as toll roads and highways. The PPP model can be applied to anything from a simple, short-term management contract to a long-term contract that includes funding, planning, building, operation, maintenance, and divestiture. The terms of a PPP are typically set out in a contract or agreement to outline the responsibilities of each party and clearly allocate risk. There are many types and delivery models of PPPs, including operation and maintenance contracts, social infrastructure, and education. The PPP model can increase the quality, efficiency, and competitiveness of public services, supplement limited public sector capacities, and raise additional finance in an environment of budgetary restrictions. However, P3 projects are often complex, with multiple stakeholders involved in the decision-making process, which can lead to decisions for political incentives rather than what is best for the project.