What distinguishes a PFP from other forms of PPPs?

PFPs, as a specific form of PPP, involve creation of an asset through private sector financing and ownership control for a specified period. The Government is willing to contribute through land, capital works, risk sharing, revenue diversion or purchase of the agreed services.

PFPs cover economic and social infrastructure and typically include both a capital component and an ongoing service delivery component.

PFPs are generally complex and involve high capital costs, lengthy contract periods that create long term obligations, and a sharing of risks between the private and public sectors. They therefore require careful consideration and approval by the Budget Committee of Cabinet.