Theoretical approaches to the definition of public-private partnership

Abstract

Despite inconsistent approaches to the definition of public-private partnership (PPP) in technical literature, there was an identified consensus that PPP is a cooperation between public and private sectors with the objective to provide public services. The main differences lie in the legal nature of the relationship (joint venture or contract), extent of risks taken by private partner, sources of financing capital expenditure, form of ownership, duration of the partnership. The key features that distinguish PPP from other forms of cooperation between the public and private sectors are the integration of infrastructure investment and public service delivery, significant risk transfer to the private partner, the long duration of the partnership; the private ownership or control of the related infrastructure.