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Understanding Public-Private Partnerships (PPP)

Learn the concept of PPP, a modality for private investment in public projects to improve public welfare. Explore PPP arrangements, agreements, payment structures, and risk-sharing aspects.

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Understanding Public-Private Partnerships (PPP)

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  1. What is PPP? The PPP modality is only a device for getting private investment into public projects with the objective of enhancing public welfare.

  2. What is PPP? (Contd.) • PPP is an arrangement in which the private sector participates in the supply of assets and services traditionally provided by the Government. It is usually characterised by: • An agreement between the Government and a private partner which undertakes to deliver an agreed service • Payment of a unitary charge by the Government or a user charge by the beneficiaries for the services rendered • A whole-life approach where the private partner is responsible for both construction and operation • Some degree of risk sharing based on allocation of risks to the party best suited to manage it

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