Introduction

Public Private Partnership Approach: Theory and Practice

1. 
   Introduction
   

There is no clear legal definition so far for the concept of Public Private Partnership (PPP).  In the present context, the governments (Developed and Undeveloped) are facing numerous limitations in fulfilling their complicated financial requirements. Due to inadequacy of Government and foreign funds particularly, for providing economic Infrastructure, it is compelled to look for private sector participation for financing.  Since the private sector is always looking for the profitable ventures, they are much reluctant to invest in the services which are not profitable. (Eg. water supply and sanitation) In this context, PPP is an approach that used for attracting private capital strategically for identified sectors/sub sectors where the “risk factor” is crucial with regard to return to investment.

2.