Public-private partnerships


A public-private partnership is a binding legal agreement between public and private sector entities where the government will pay a private sector entity to perform a service. 

Essential Characteristics

A public-private partnership will significantly vary depending on the type of service being sought by a public entity. Nonetheless, public-private partnerships have the following principal features:

  • The provision of serving-enabling infrastructure from the public entity to the private entity
  • Risk-sharing between public and private sectors
  • Contributions to be made by the government such as land, capital works, risk-sharing and other support mechanisms
  • How payments will be made.