This chapter: • Reviews the definition of a Public-Private Partnership and provides a description of the broad continuum of private sector involvement in infrastructure (management & lease contract, concession, BOO-BOT-BOOT, full Design-Build-Finance-Operate-Maintain "PFI") that may be considered PPPs. • Describes the main features of a PPP and differentiates between a concession-based PPP and an availability-based PPP. • Examines the main misunderstandings regarding the use of PPPs vs traditional public procurement methods. • Reviews appropriate reasons for a government to engage in PPPs and in appropriate reasons. • Lays out the basic requirements for a successful PPP programme. After reviewing this chapter, policy-makers will: • Have a better understanding of the benefits of PPPs and the different types of PPPs ; • Be more aware of the responsibilities, costs and risks retained by governments in PPPs ; • Be better able to identify projects that may be successful if developed by PPP ; • Be more knowledgeable of the requirements for a successful PPP programme including: rule of law/dispute resolution, high-level political commitment, government capacity and legal frameworks. |