Public-Private Partnership: The New Phenomenon

The ever increasing growth in urban population today has imposed tremendous pressure on State resources. In this situation, public-private partnership (PPP) can offer a solution to resource scarcity. It is defined as an arrangement between government and private sector bodies, for the purpose of providing public infrastructure and public services. Government and private sector bodies join hands to supply infrastructure and services to the members of the public. Such partnerships are believed to be characterized by the sharing of investment, risk, responsibility and reward between the partners. The underlying logic for establishing partnerships is that both the public and the private sectors have unique characteristics that provide them with advantages in specific aspects of service or project delivery.