Public Private Partnership Council of NJ

What is a Public-Private Partnership?

A public-private partnership (PPP) describes a government service or private business venture funded and operated through a partnership of government and one or more private sector companies. These arrangements are sometimes referred to as PPP or P3.

In some types of PPP, the government uses tax revenue to provide capital for investment, with operations run jointly with the private sector or under contract. In other scenarios, capital investment is made by the private sector on the strength of a contract with government to provide agreed services.

Government contributions to a PPP may also be in-kind, such as the transfer of assets. In projects that are aimed at creating public goods, such as in the infrastructure sector, government may provide a capital subsidy in the form of a one-time grant to make the project more attractive to the private investors. In other cases, the government may support the project by providing revenue subsidies, including tax breaks or by providing guaranteed annual revenues for a fixed period.

A typical PPP example would be a hospital building financed and constructed by a private developer and then leased to the hospital authority. The private developer then acts as landlord, providing housekeeping and other non medical services while the hospital itself provides medical services.

Examples of Public-Private Partnerships Click here

There are six keys to a successful PPP, according to The National Council of Public-Private Partnerships:

	Statutory and Political Environment
	Public Sector’s Organized Structure
	A Detailed Business Plan
	Guaranteed Revenue Stream
	Stakeholder Support
	Pick Your Partner Carefully