Public-Private Partnerships (PPPs) describe a form of cooperation between public authorities and economic operators. The primary aims of this cooperation are to fund, construct, renovate or operate an infrastructure, or the provision of a service. PPPs are prevalent in infrastrucuture/critical infrastructure sectors such as transport, public health, education, national security, waste management, and water and energy distribution.
PPPs are characterized by:
- the duration of the relationship between the partners;
- the method of funding the project;
- the role of the partners in the definition of objectives, design, completion, implementation and funding;
- the distribution of risks.
The European Commission distinguishes two types of PPP:
- PPPs of a purely contractual nature (the partnership is based solely on contractual links and may fall within the scope of European directives on public procurement);
- PPPs of an institutional nature (these involve cooperation within a distinct entity and may lead to the creation of an ad-hoc entity held jointly by the public sector and the private sector or the control of a public entity by a private operator).
- EU rules on setting up public-private entities (COM(2007) 6661)
- Green Paper on public-private partnerships and Community law on public contracts and concessions (COM(2004) 327 final)
- Boin, R.A. & Smith, D.: Terrorism and Critical Infrastructures: Implications for public-private crisis management, in: Public Money and Management, vol. 26, no. 5 (2006): 295-304.