What is PPP?

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PPP is defined by the APMG PPP Certification Guide (since 2017 the global standard for the PPP profession) as: “A long term contract between a public party and a private party for the development (or significant upgrade or renovation) and management of a public asset (including potentially the management of a related public service), in which the private party bears significant risk and management responsibility throughout the life of the contract, provides a significant portion of the finance at its own risk, and remuneration is significantly linked to performance and/or the demand or use of the asset or service so as to align the interests of both parties.”

 

The concept as such has been applied since ancient times though has gained the last three decades increasing recognition as an effective mechanism for governments to accelerate investments and deliver projects and services more efficiently, typically referred to as improved value for money.

 

The UN and its 193 member states have defined the promotion of PPP as one the Sustainable Development Goals in order create a better world for people and our planet.