PublicPublic--private partnershipprivate partnership ( (PPPPPP))

describes a government service or private describes a government service or private business venture which is funded and operbusiness venture which is funded and operated through a partnership of government ated through a partnership of government and one or more and one or more private sectorprivate sector companies companies. .

PublicPublic--private partnershipprivate partnership ( (PPPPPP))

In some types of PPP, the government uses tax In some types of PPP, the government uses tax revenue to provide revenue to provide capitalcapital for investment, with for investment, with operations run jointly with the private sector or operations run jointly with the private sector or solely by the private sector under a contract (or solely by the private sector under a contract (or vise versa).vise versa).

Examples often include infrastructure programs Examples often include infrastructure programs like toll roads and tunnels where Gov provides like toll roads and tunnels where Gov provides finance and contracts out running of service. finance and contracts out running of service. Many jails in US are now PPPs where Gov Many jails in US are now PPPs where Gov builds jails and pays private security companies builds jails and pays private security companies to run them.to run them.

Advantages and DisadvantagesAdvantages and Disadvantages

Maybe costs taxpayers less and private Maybe costs taxpayers less and private companies providing some finance. companies providing some finance.

Greater incentive for private company to Greater incentive for private company to be efficient, as need to be or lose be efficient, as need to be or lose money/lose contract. If do well can make money/lose contract. If do well can make large profitslarge profits

But will quality of service be cut and prices But will quality of service be cut and prices go up, due to need to make profit?go up, due to need to make profit?