is a partnership between the public sector and private run organizations. In
some cases, PPP may involve a consortium of companies especially if the project is capital intensive.
Often PPP assume different forms, but typically hold the following
A public sector agency engages a private sector player into the
financing, design, and construction of a particular project, and may even
include aspects related to maintenance of the project in question
A public sector client can get into arrangements to pay for assets for a
concessionary period mainly during the lifetime of the asset under question
A private organization can contract the construction and facilities
management through some fixed-price hence passing the construction and
operational performance risks to sub-contractors and at the end of the
concession period the asset is handed over back to the government who decides
to own and operate the asset, renew the concessionary contract with the same
entity, or even award it to a different player.
of the main distinction between PPP compared to conventional procurement
techniques is that all risks associated with ownership and operation of the
assets are assumed by the private sector player instead of the government or
public sector agency (Osei-Kyei
and Chan, 2015). For instance, a hospital can be financed and
constructed by a private sector player and later on transferred by the local
district health board. During such a scenario, the private player focuses their
efforts on services such as housekeeping, maintenance, and other non-medical
chores while the hospital management places emphasis on delivery of core
medical services such as surgery and dispensation of drugs.