PPP Features and Forms

Typical PPP features include:

• long term contractual relationships between public and private sectors (contracts terms from 3 to 25 years);
• under the partnerships contract a single private body is responsible to engage not in one type but in complex activity (i.e. to carry out infrastructure objects designing, construction, renovation, repair and maintenance of the assets);
• PPP approach can bring value for money in public services delivery;
• project-related risks are shared among partners and allocated to the party best able to manage it;
• public sector payments to private partner only commence when the asset required is first available for use to deliver services;
• ownership right of the assets, transferred to a private body enabling him to use and manage them in delivering services, remains with public sector.

By the type of cooperation, PPP falls in two forms:

1. institutional PPP – when a certain activity is carried out by the jointly established public and private sectors entity;
2. contractual PPP – when a certain activity is carried out under the contract (e.g. concession, public procurement, joint activity, etc.).