- Definition: A way to execute and maintain a project (generally infrastructure) through collaboration.
- Involves government (public) and private sector.
- Private sector is involved in at least operation and maintenance of the project.
- How it Works:
- Government selects private partner through transparent competitive bidding.
- An “Agreement/Contract Agreement/Concession Agreement” is signed.
- This agreement defines roles, responsibilities, and risk sharing.
- Private party is assigned roles where it is more efficient.
- Government handles roles where it is more capable (e.g., clearances, land acquisition).
- Risks are shared based on who is best able to manage them.