Public And Private Sector Partnership (Ppp Or P3)

Public And Private Sector Partnership (Ppp Or P3)

Public And Private Sector Partnership (Ppp Or P3)

oboloo’s Glossary

Public And Private Sector Partnership (Ppp Or P3) Definition

A Public and Private Sector Partnership (P3 or PP) is a business arrangement between a public sector organization and a private sector company. The public sector organization provides the funding for the project, while the private sector company manages and implements the project.

The advantages of P3s include:

– Improved service delivery: Private companies are typically more efficient than public organizations, so P3s can lead to improved service delivery.

– Reduced costs: Private companies are able to access capital at lower interest rates than public organizations, so P3s can lead to reduced project costs.

– Increased accountability: Private companies are typically more accountable to their shareholders than public organizations, so P3s can lead to increased accountability.

The disadvantages of P3s include:

– Increased risk: Private companies are typically more exposed to risks than public organizations, so P3s can lead to increased risks for taxpayers.

– Limited transparency: Private companies are not subject to the same disclosure requirements as public organizations, so P3s can lead to reduced transparency.

– Limited competition: Private companies often have an unfair advantage over other potential providers, so P3s can limit competition.