Public-private partnership
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Public-private partnership (PPP) is a variation of privatization in which elements of a service previously run solely by the public sector are provided through a partnership between the government and one or more private sector companies. Unlike a full privatization scheme, in which the new venture is expected to function like any other private business, the government continues to participate in some way. These schemes are sometimes referred to for short as PPP or P3.
Typically, a private sector consortium forms a special company called a "special purpose vehicle" (SPV) to build and maintain the asset. The consortium is usually made up of a building contractor, a maintenance company and a bank lender. It is the SPV that signs the contract with the government and with subcontractors to build the facility and then maintain it. A typical PPP example would be a hospital building financed and constructed by a private developer and then leased to the hospital authority. The private developer then acts as landlord, providing housekeeping and other non medical services while the hospital itself provides medical services.
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Some examples
International
Some international health care programs may be considered public-private partnerships:
- The Global Alliance for Vaccines and Immunization is financed per 75% (750 Mio.US$) by the Bill and Melinda Gates Foundation, which has a permanent seat in the supervisory board of GAVI.
- As a UN agency, the WHO is financed through the UN system by contributions from member states. In recent years, the WHO's work has involved more collaboration with NGOs and the pharmaceutical industry, as well as with foundations such as the Bill and Melinda Gates Foundation and the Rockefeller Foundation. Some of these collaborations may be considered public-private partnerships; half the WHO budget is financed by private foundations.
Britain
- The London Underground (since 2003)
- Some National Health hospitals
- Private Finance Initiative
Canada
- The 407 ETR toll road in Toronto, Ontario
- The Royal Ottawa Hospital in Ottawa, Ontario
- The William Osler Hospital in Brampton, Ontario
United States
- Central Park, New York City
- The redevelopment of downtown Chattanooga, Tennessee.
External links
- BBC News article http://news.bbc.co.uk/1/hi/uk/1518523.stm
- Industry Canada Website http://strategis.ic.gc.ca/epic/internet/inpupr-bdpr.nsf/vwGeneratedInterE/Homede:Public Private Partnership