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What Is PPP?
Public-Private Partnership model is a profitable agreement between a public sector institution/municipality and a private party, in which the private party assumes substantial financial, technical and operational risk in design, financing, building and operation of a project.
The governments and business sectors from all over the world use PPP projects in order to develop Education, Healthcare, Infrastructure and other important sectors. PPP projects are beneficial for the private sector as well.
In case of insufficient funds in public sector, the private sector will cover most of the costs for the project (60/40%).
Public-Private Partnership is also perceived as a replacement model of privatization. PPP model gives a government the ability to reserve the ownership of strategically important sectors.