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Public Private Partnerships (PPPs) are arrangements where the public and private sectors both bring their complementary skills to a project, with varying levels of involvement and responsibility, for the purpose of providing public services or projects. They are characterised by the following:

  • Large scale expensive long-term projects usually involving the construction of a new facility designed to deliver particular services;

  • The Government defines the quality and quantity of services, and the timeframe in which they are to be delivered;

  • The private sector is responsible for delivering the defined service while the government is mainly involved in regulation and procurement;

  • A long term relationship is established, typically between 10 years and 30 years, depending on the nature of the facilities, assets or services to be delivered;

  • Responsibilities and risks are allocated to the party best able to manage them;

  • The private sector and/or the Government finances the project (wholly or in part). The private sector and/or the Government would recoup its investment from charges on end-users or payments made by the Government during the life of the contract;

  • The private sector is encouraged to make use of its innovation and flexibility to deliver good quality, cost-effective services throughout the project lifecycle; and

  • The different functions of design, construction, operation and maintenance are integrated / use a whole-of-life approach.

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