Public-Private Partnerships

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Definition of 'Public-Private Partnerships'

A public-private partnership (PPP) is a contractual agreement between a public sector agency and a private sector company. The agreement typically involves the private sector company providing services or infrastructure that the public sector agency would otherwise provide itself.

PPPs can be used for a variety of projects, including:

* Building and maintaining roads, bridges, and other infrastructure
* Providing public services, such as education, healthcare, and social services
* Financing and managing public projects

PPPs can offer a number of benefits to both the public and private sectors. For the public sector, PPPs can help to:

* Deliver projects more quickly and efficiently
* Reduce costs
* Improve quality
* Increase innovation

For the private sector, PPPs can offer a number of opportunities, such as:

* Access to new markets
* Increased revenue
* Reduced risk
* Enhanced brand reputation

However, PPPs can also be controversial. Some critics argue that PPPs can lead to higher costs for taxpayers, and that they can give private companies too much control over public services.

Despite the controversy, PPPs are becoming increasingly popular. In the United States, the value of PPPs has grown from $100 billion in 1990 to over $1 trillion today.

PPPs are a complex and evolving area of public finance. There is no one-size-fits-all approach to PPPs, and each project must be carefully evaluated on its own merits. However, when done well, PPPs can be a valuable tool for delivering public services and infrastructure.

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