Public Private Partnership (PPP)

From energypedia


There is no broad international consensus on what constitutes a public private partnership (PPP).[1]

In general a PPP is a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies.[2] Usually within an arrangement (medium to long term) whereby some of the services that fall under the responsibilities of the public sector are provided by the private sector, with clear agreement on shared objectives for delivery of public infrastructure and/ or public services. PPPs typically do not include service contracts or turnkey construction contracts, which are categorized as public procurement projects, or the privatization of utilities where there is a limited ongoing role for the public sector.[1]

Arrangements & Types of Public Private Partnership Agreements

PPPs can take a wide range of forms varying in the degree of involvement of the private entity in traditionally public infrastructure.[3]

More information and a summary of each type of arrangement and sample agreements (World Bank)

The most common forms of PPP in utilities (OECD)

Principal Roles for the Private Sector

Four principal roles for the private sector in PPP schemes[4]:

  • to provide additional capital;
  • to provide alternative management and implementation skills;
  • to provide value added to the consumer and the public at large;
  • to provide better identification of needs and optimal use of resources


Further Information