Introduction

Definitions for PPP

PPPs are defined by various agencies in different manner and there is no universally accepted definition for it.  Some definitions of PPP are given below.

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  PPP means an arrangement between Government or statutory entity or Government owned entity on one side and private sector entity on the other, for the provision of public assets and/or related services for public benefit, through investments being made by and/or management undertaken by the private sector entity for a specified period of time, where there is a substantial risk sharing with the private sector and the private sector receives performance linked payments that conform to specified pre-determined and measurable performance standards.
  

(Department of Economic Affairs, Ministry of Finance, India)

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  PPP is a generic term for the relationships formed between the private sector and public bodies often with the aim of introducing private sector resources and/or expertise in order to help provide and deliver public sector assets and services. The term PPP is used to design, build, finance and operate (DBFO) type service contracts and formal joint venture companies/
  

(Local Government Procurement Agency, UK)

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  A PPP is a partnership between the public sector and private sector for the purpose of delivering a project or a service traditionally provided by the public sector. PPPs come in a variety of different forms, but at the heart of every successful project is the concept that better value for money may be achieved through the exploitation of private sector competencies and the allocation of risk to the party best able to manage it.
  

(Department of Environment and Local Government, Ireland)   After going through the different definitions of on PPP, one can simply say that PPPs are long-term contractual arrangements between the public and private sectors for the delivery of public services in efficient manner.  In this scenario, PPPs involve three main features namely risk transfer, long-term contracts and partnership agreement.  The governments around the world tend to adopt this approach owing to three main types of benefits.

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  Ability of developing new infrastructure services despite short-term fiscal constraints.
  
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  Value for money through efficiencies in procurement, construction and operation.
  
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  Improved service quality and innovation through use of private sector expertise and performance incentives.
  

3.