Private Public Partnership

Public-private partnership (PPP) is a funding model for a public infrastructure project. Here, the public partner is represented by the government at a local, state and/or national level. The private partner can be a privately-owned business, public corporation or consortium of businesses with a specific area of expertise.

PPP is a broad term that can be applied to anything from a simple, short term management contract (with or without investment requirements) to a long-term contract that includes funding, planning, building, operation, maintenance and divestiture. PPP arrangements are useful for large projects that require highly-skilled workers and a significant cash outlay to get started. They are also useful in countries that require the state to legally own any infrastructure that serves the public.

Different models of PPP funding are characterized by which partner is responsible for owning and maintaining assets at different stages of the project. This model shall make the parties involved to the project liable and the project built under this model is sustainable. 

Reckoning the need of PPP in infrastructure development, the Bank has been established to initiate such project financing. Presently the Bank is in discussion with different MDBs to implement the right modality of PPP in various sectors like transportation, aviation etc. This shall not only increase the sustainability of the infrastructure projects but the investment shall also be diversified and not only be concentrated to the Government.