Public-Private Partnerships

Definition of 'Public-Private Partnerships '


A business relationship between a private-sector company and a government agency for the purpose of completing a project that will serve the public. Public-private partnerships can be used to finance, build and operate projects such as public transportation networks, parks and convention centers. Financing a project through a public-private partnership can allow a project to be completed sooner or make it a possibility in the first place.

Investopedia explains 'Public-Private Partnerships '


Public-private partnerships often use private-sector investments to finance a public project when sufficient public funding is not available. For example, a city government might be heavily indebted, but a private enterprise might be interested in funding the project's construction in exchange for receiving the operating profits once the project is complete.


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