Partnership

Privatization

Explanation

Asset Ownership

Public

Private

Privatization involves selling assets, while the partnership involves buying assets.

Risk Bearing

Public and Private

Private

Privatization transfers all risks and benefits to the private sector, while the partnership transfers some risks to the private sector.

Specifications of production/services

Public

Private

Privatization allows the private sector to freely set specifications of the production / services, while these specifications are pre-defined in the PPP contracts within solicitation.

Responsibility towards the public people

Public

Private

In the PPP contracts, the Sate shall remain responsible for providing services.

Direction of money flow

Form public to private

From private to public

In privatization, the State shall receive sums for transferring the project to the private sector, while in partnership, the State shall pay the private sector sums for providing a service and transferring the project to it.