What is a PPP?

There is no consensus of what comprises a PPP, with definitions varying across countries, sectors and organisations. In some countries, PPP is a broad term describing any partnerships between the public and private sectors, while in others it is defined more narrowly depending on the length, contract value, financing source or the nature of the service provided by the private sector.

In the case of Saudi, no clear definition has yet been set, with this only likely to arise once the regulatory framework is developed and the sector matures. Based on recent announcements by the government, it is likely that most PPPs will involve mid to long-term contracts (15 - 30 years), with the public sector maintaining a regulatory role while tasking the private sector with the design, financing, development and operation of assets.