Public Private Partnership

Broadly PPP refers to an agreement between government and the private sector regarding the provision of public services or infrastructure. Purportedly a means of bringing together social priorities with the managerial skills of the private sector, relieving government of the burden of large capital expenditure, and transferring the risk of cost overruns to the private sector. Rather than completely transferring public assets to the private sector, as with privatization, government and business work together to provide services.

In a PPP, each partner, usually through legally binding contract(s) or some other mechanism, agrees to share responsibilities related to implementation and/or operation and management of a project. This collaboration or partnership is built on the expertise of each partner that meets clearly defined public needs through appropriate allocation of:

  • Resources
  • Risks
  • Rewards
  • Responsibilities

The allocations of these elements and other aspects of PPP projects such as, details of implementation, termination, obligations, dispute resolution and payment rrangements are negotiated between the parties involved and are documented in written contract agreement(s) signed by them.

As per the Scheme for Financial Support to Public Private Partnerships in Infrastructure, of the Government of India,

"The Public-Private Partnership (PPP) Project means a project based on contract or concession agreement between a Government or statutory entity on the one side and a private sector company on the other side, for delivering an infrastructure service on payment of user charges."

Government of Assam Policy on PPP

The Government of Assam Policy on Public Private Partnership is notified in the Assam Gazette.

Public Private Partnerships Models

A good document on PPP Models is available at: