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What is a PPP

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What is a PPP

A Public-Private Partnership (PPP) is a legally enforceable contract in which a Contracting Authority partners with a Private Sector Partner to build, expand, improve, or develop infrastructure or service in which the Contracting Authority and Private Sector Partner contribute one or more of know-how, financial support, facilities, logistical support, operational management, investment or other input required for the successful deployment of a product or service, and for which the Contracting Authority and the Private Sector Partner is compensated in accordance with a pre-agreed plan, typically in relation to the risk assumed and the value of the result to be achieved. Usually the private entity performs infrastructure service delivery functions that would otherwise have been provided through traditional public sector procurement and assumes the associated risks through a long term contract (typically ranging from 10 to 50 years). In return, the private entity receives a benefit/financial remuneration according to predefined performance criteria, which may be derived:

  1. Entirely from service tariffs or user charges,
  2. Entirely from GoM’s budgets, and or
  3. A combination of the above