Public-private partnerships (PPPs) are a mechanism for government to procure and implement public infrastructure and/or services using the resources and expertise of the private sector. Where governments are facing ageing or lack of infrastructure and require more efficient services, a partnership with the private sector can help foster new solutions and bring finance.
PPPs combine the skills and resources of both the public and private sectors through sharing of risks and responsibilities. This enables governments to benefit from the expertise of the private sector, and allows them to focus instead on policy, planning and regulation by delegating day-to-day operations.
In order to achieve a successful PPP, a careful analysis of the long-term development objectives and risk allocation is essential. The legal and institutional framework in the country also needs to support this new model of service delivery and provide effective governance and monitoring mechanisms for PPPs. A well-drafted PPP agreement for the project should clearly allocate risks and responsibilities.
The PPP in Infrastructure Resource Center for Contracts, Laws and Regulations (PPPIRC) seeks to give a offer practical tools for developing a legal enabling environment and regulation of PPPs conducive to PPPs and to provide sample and annotated contracts and bidding documents from different sectors for PPP projects.
For a general discussion on PPPs, please visit our sister website the PPP Knowledge Lab.