Public-private partnership (PPP) • describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies.
Public-private partnership (PPP) • In some types of PPP, the government uses tax revenue to provide capital for investment, with operations run jointly with the private sector or solely by the private sector under a contract (or vise versa). • Examples often include infrastructure programs like toll roads and tunnels where Gov provides finance and contracts out running of service. Many jails in US are now PPPs where Gov builds jails and pays private security companies to run them.
Advantages and Disadvantages • Maybe costs taxpayers less and private companies providing some finance. • Greater incentive for private company to be efficient, as need to be or lose money/lose contract. If do well can make large profits • But will quality of service be cut and prices go up, due to need to make profit?