Public-private partnerships (PPPs) have emerged as a popular mechanism for funding and developing infrastructure projects around the world. In recent years, these partnerships have extended beyond traditional transportation and utility projects to encompass social infrastructure. This trend reflects the growing recognition that social infrastructure, including schools, hospitals and community centers, play a critical role in promoting economic development and improving quality of life. By leveraging the resources of both the public and private sectors, PPPs can help to optimize the provision of social infrastructure while reducing the burden on public budgets.
During my time as the CEO of a public-private partnership (P3) development firm and national policy advisor on P3s, I’ve seen firsthand how public-private partnerships can help improve social infrastructure, but I’ve also seen instances where it may not be the best solution.
PPPs involve the collaboration between the public and private sectors to build and operate infrastructure projects. The public sector retains ownership and control of the assets, while the private sector provides financing, construction and/or management services. PPPs can be structured in a variety of ways, including build-operate-transfer (BOT), build-own-operate (BOO) and design-build-finance-operate (DBFO). In any case, the partnerships are typically established through a competitive bidding process to ensure accountability and the best value for taxpayers.
Forbes
by Dee Brown
May 5, 2023