A4.1 This Annex provides further detail on how Public Private Partnership (PPP) options should be considered in appraisal. PPP options include PF2, a revised approach to PPPs as described in A New Approach to Public Private Partnerships. More detail is available in the HM Treasury Business Case Guidance.
A4.2 PPP options may be relevant to consider alongside other options as part of public service provision in options appraisal. PPP options can offer alternative funding models for public schemes. They can also offer strategic partnering arrangements for the cost-effective delivery and operation of public services. These include different possibilities for construction, operation, delivery and risk sharing, all of which have the potential for different costs, benefits and degrees of complexity relative to public sector provision or funding. There are also different risks and specific issues to consider in an assessment of a PPP option.