PPP

PPP is a long term contract between a Public entity and a Private entity. The contract is long term in which the entire risk moves towards the private party for the life of contract. Contract is a relationship or delegation of management between private party and public party. The private party can be the project SPV if a consortium. The public arty is a government entity, government agency or a paracetal. In PPP contract the contract is between the public party and private party for the development and management of public asset through the entire life cycle of the project. The private party is also responsible to arrange significant amount of finance. The remuneration to private party is linked to the performance and or demand of public asset or service so as to align the interest of both the parties.