Public-Private Partnership

Public-Private Partnership

Public-Private Partnerships (PPP) are a form of cooperation between public and private sector, aimed at financing and managing infrastructure or providing services in the public interest.

Broadly speaking, a PPP is a contract between a public administration and a business enterprise, granting the latter a license to build public works or provide a service in return for a regular payment or the right to charge fees. Several kinds exist, for instance: license to build and manage, license to provide services, leasing, etc.

PPPs are a new business model designed to overcome the lack of financial resources. Using a PPP as a model for transport infrastructure provided by Etway is a win-win option, where all actors in play are winners. Public administrations typically have to manage noise pollution problems but do not have the financial resources to solve them, and private enterprises have solutions available but cannot find administrations with sufficient financial resources to invest; this can stifle the investment market.

Thanks to a PPP, public administrations can solve noise pollution problems with fewer resources than required, as well as making their energy generation resources more efficient. Businesses can deliver their solutions in exchange for managing the infrastructure. As anticipated, the result is a model in which all parts satisfy their interests.

Public-private partnerships have only recently been made available, but examples already exist in Italy, such as the photovoltaic barrier in Oppeano (VR).