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Public Private Partnership (PPP)

What does Public Private Partnership mean?

A Public Private Partnership is a long-term contract between the public sector and a private company in a special-purpose partnership, which sees its task in planning, creating, financing, managing, operating and exploiting public services previously provided solely by the state.

Public Private Partnerships thus represent a procurement alternative of the state to the conventional self-realisation. The aim of the PPP is the division of labour, whereby the private partner assumes responsibility for the efficient production of the service. The public partner, in turn, ensures that public-interest objectives are observed, and in return benefits from the relief of strained public budgets.

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