Public-private partnerships should not be mistaken with privatisation initiatives by the government. Although the words are often used interchangeably in the media, the outright ownership of a public asset or service characterizes privatisation, whereas the government retains ownership of the assets and usually regulates the use of them in P3s. Because of this, P3s carry a much higher degree of accountability than privatisation when it comes to the delivery of a public service, since public authorities remain responsible for setting policies and the level of service.
In fact, governments can extract a high degree of private sector accountability from P3 contracts through performance penalties. P3 contracts usually embed penalty payments that accrue to the private consortium in the event that a project does not satisfy safety and quality standards or predetermined construction deadlines. In essence, the government can transition from one of operations manager to one of contract manager in a P3, thereby allowing it to define outcomes that must be achieved by the private sector, set reporting standards and maintain performance monitoring.