Editing Public–private partnership (section)

{{Short description|Government/private company partnership}}
{{Redirect|PPPs|other uses|PPPS (disambiguation){{!}}PPPS|and|PPP (disambiguation)}}
[[File:Digital-handshake-4c.png|thumb|Public–private partnerships are often represented by a handshake, symbolizing the private and public partners coming to an agreement.]]
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{{use dmy dates|date=June 2021}}
A '''public–private partnership''' ('''PPP''', '''3P''', or '''P3''') is a long-term arrangement between a government and [[private sectors|private sector]] institutions.<ref name="Hodge, G 2007 pp.54ku558">Hodge, G. A and Greve, C. (2007), Public–Private Partnerships: An International Performance Review, Public Administration Review, 2007, Vol. 67(3), pp. 545–558</ref><ref name=":1">{{Cite journal|last1=Roehrich|first1=Jens K.|last2=Lewis|first2=Michael A.|last3=George|first3=Gerard|title=Are public–private partnerships a healthy option? A systematic literature review|journal=Social Science & Medicine|volume=113|pages=110–119|doi=10.1016/j.socscimed.2014.03.037|pmid=24861412|year=2014|doi-access=free|hdl=10044/1/13799|hdl-access=free}}</ref> Typically, it involves [[private capital]] financing government projects and services up-front, and then drawing revenues from [[taxpayer]]s and/or users for profit over the course of the PPP contract.<ref>{{Cite book|title=Encyclopedia of the City|url=https://archive.org/details/encyclopediacity00cave|url-access=limited|last=Caves|first=R. W.|publisher=Routledge|year=2004|isbn=9780415252256|pages=[https://archive.org/details/encyclopediacity00cave/page/n591 551]}}</ref> Public–private partnerships have been implemented in [[Public–private partnerships by country|multiple countries]] and are primarily used for [[infrastructure]] projects. Although they are not compulsory, PPPs have been employed for building, equipping, operating and maintaining schools, hospitals, transport systems, and water and sewerage systems.<ref>{{Cite book|last=Bovaird|first=Tony|editor1-first=Tony|editor1-last=Bovaird|editor2-first=Elke|editor2-last=Loeffler|date=2015-09-25|title=Public Management and Governance|doi=10.4324/9781315693279|isbn=9781315693279|url=https://figshare.com/articles/online_resource/Public_Management_and_Governance/19476941 }}</ref>

Cooperation between private actors, [[corporation]]s and [[government]]s has existed since the inception of [[sovereign state]]s, notably for the purpose of [[Tax collector|tax collection]] and [[colonization]].<ref name=":4" /> Contemporary "public–private partnerships" came into being around the end of the 20th century. They were aimed at increasing the private sector's involvement in [[public administration]]. They were seen by governments around the world as a method of financing new or refurbished [[public sector]] assets [[Off-balance-sheet|outside their balance sheet]].<ref name=":0" /> While PPP financing comes from the private sector, these projects are always paid for either through taxes or by users of the service, or a mix of both. PPPs are structurally more expensive than publicly financed projects because of the private sector's higher cost of borrowing, resulting in users or taxpayers footing the bill for disproportionately high [[interest]] costs. PPPs also have high [[transaction cost]]s.<ref name=":0" />

PPPs are controversial as funding tools, largely over concerns that public [[return on investment]] is lower than returns for the private funder. PPPs are closely related to concepts such as [[privatization]] and the contracting out of government services.<ref name="Hodge, G 2007 pp.54ku558" /><ref name="Marta Marsilio 2011 pp.763-782" /> The secrecy surrounding their financial details complexifies the process of evaluating whether PPPs have been successful.<ref name="Hodge, G.A 2016 pp.1-24">Hodge, G.A. and Greve, C. (2016), On Public-Private Partnership Performance: A Contemporary Review, Public Works Management & Policy, pp. 1–24</ref> PPP advocates highlight the sharing of risk and the development of [[innovation]],<ref name="Hodge, G.A 2016 pp.1-24" /> while critics decry their higher costs and issues of [[accountability]].<ref name=":0">{{Cite book|last=Whiteside|first=Heather|title=Public-private partnerships in Canada|publisher=Fernwood Publishing|year=2016|isbn=978-1-55266-896-2|location=Halifax|oclc=952801311}}</ref> Evidence of PPP performance in terms of value for money and efficiency, for example, is mixed and often unavailable.<ref>Mols, F. (2010) Harnessing Market Competition in PPP Procurement: The Importance of Periodically Taking a Strategic View. Australian Journal of Public Administration, 69(2), 229-244.</ref>