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Public-Private Partnerships (PPPs) are being widely used as a procurement method by governments worldwide. Such partnerships aim to better serve the public through partnering arrangements with the private sector.

In the PPP program, the Government sees itself becoming more of a regulator and less a provider of public services. A clear and fair sharing of risks in financing, developing, operating, and maintaining infrastructure services between the public and private sector, based on a mutual commitment to achieve a desired public sector outcome while obtaining an appropriate rate of returns for the private sector, is a distinguishing feature of PPP projects and essential for their success.

The capital and operational expenses incurred by the private investor can be recovered under the PPP modality by charging users for the service provided or via fixed (or partially fixed) periodic payments (annuities) disbursed by the public sector over the concession period, or by a combination of both.

PPPs allow each partner to concentrate on activities that best suit their skills. For the public sector this means planning and identifying infrastructure service needs and focusing on developing national, provincial, and local sector-specific policies, but also to oversee these and to enforce the PPP agenda. For the private sector, the key is to deliver effectively the infrastructure and facilities required by the public sector and consumers at the project level.