Public–private partnership

A public–private partnership is a long-term arrangement in which a government and a private entity share responsibility for financing, delivering, or operating a public service or infrastructure project.

Design–build–finance–operate: A project-delivery model in which one private consortium designs, builds, finances, and operates an asset. It bundles several responsibilities under one long-term partnership contract.
Toll road: A road whose users pay a charge to access or travel on it. Toll revenue can finance a privately operated road under a partnership concession.
Traditional public procurement: A delivery approach in which government separately procures construction and typically retains responsibility for financing and operation. It separates tasks that partnership contracts often bundle over the asset's life.
Fiscal risk: The possibility that public finances will be harmed by uncertain costs, revenues, or obligations. Guarantees and contingent liabilities can leave governments exposed despite private financing.
Private Finance Initiative: A United Kingdom policy launched in 1992 that used private finance and long-term contracts to deliver public infrastructure and services. It became a prominent model for modern partnership procurement.
Availability payment: A periodic public payment to a private provider, conditional on an asset or service meeting agreed performance standards. It links private revenue to infrastructure availability rather than user demand.
Water privatization: The transfer of water-system ownership, operation, or service provision from public to private entities. Water projects reveal how partnership arrangements differ from full privatization.
Privatization: The transfer of ownership or control of a public asset or enterprise to private hands. Partnerships generally retain a public role instead of transferring the whole asset or service.
Contingent liability: A possible future obligation whose existence or amount depends on an uncertain event. A government may owe support if a partnership's revenues or performance fail.
New Public Management: A reform movement that applied private-sector management ideas and performance measures to public administration. Its emphasis on contracting and measurable outputs helped shape partnership policies.

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