Currently there is no common definition of a P3. The Canadian Council for Public-Private Partnerships defines P3s as follows:
"A cooperative venture between the public and private sectors, built on the expertise of each partner, that best meets clearly defined public needs through the appropriate allocation of resources, risks and rewards."
However, this definition does little to assist in the identification of P3s as opposed to traditional delivery. As a result, there is no clear delineation between a traditional delivery model and P3. In general terms, a P3 will transfer more of the risks and responsibilities to the private sector, but this still does not provide a distinguishing characteristic that defines a P3. The City has adopted the following definition for P3s for the purpose of a P3 policy and evaluation framework:
A Public-Private Partnership is a contractual agreement between a public authority and a private entity for the provision of infrastructure and/or services in which:
iv. The private sector participant assumes the responsibility for financing part or all of the project; and/or
v. The City seeks to transfer risks that it would normally assume, based on the private sector participant's ability to better manage those risks; and/or
vi. The arrangement extends beyond the initial capital construction of the project.