Public-Private Partnership

What is a Public-Private Partnership?

Public-Private Partnership is a contrac tual agreement between a public agency and a private sector entity. With Public-Private Partnership, the public agency and the pri vate sector entity share assets, skills, risks and rewards and set up one project. Pub lic-private partnerships combine the public sector capital and private sector capital to improve public services or the management of public sector assets. Public-private part nerships contribute more advantages to the government than a privatization form due to the fact that PPPs emphasize the role of the government, whereas, in a privatization form, the whole business needs to be transferred to the private sector.