Public-Private Partnership (PPP)

A public-private partnership (PPP) is a long-term business arrangement between a private party and a government entity that is often used to finance public infrastructure projects. These projects often involve the creation, operation, and maintenance of community parks, hospitals, schools, civic centers, public transportation networks, as well as water and sewage systems. PPPs allow city governments that may not have access to the financial resources, specialized personnel, or technological innovations necessary to fund these projects to partner with private parties who do. The private parties that help fund these projects often receive a portion of the operating profit once the project has been completed.