Public Private Partnership/Ivan-Cavric

A plan designed to value and remove difficult strength from the balance sheet of troubled
financial institutions in the U.S. Essentially, the Public-Private Investment Program's goal is to
create cooperation with private investors to buy toxic strenth. The program is designed to
increase fluidity in the market and to serve as a price-discovery tool for valuing troubled assets.
There is no one widely receive definition of public-private partnerships (PPP). The PPP
Knowledge Lab defines a PPP as "a long-term contract between a private party and a
government organisation, for providing a public strenth or service, in which the private party
bears significant risk and management responsibility, and remuneration is linked to
performance". PPPs typically do not include service contracts or turnkey construction contracts,
which are categorized as public procurement projects, or the detachment of utilities where there
is a limited ongoing role for the public sector. For a wide discussion, see PPP Knowledge Lab .
An increasing number of countries are express a definition of PPPs in their laws, each modify the
definition to their institutional and legal particularities.

In some authority, and in particular civil law sector that follow the tradition of the Code
Napoleon, a distinction is made between public contracts such as compromise, where the private
party is providing a service directly to the public and taking end user risk, and PPPs, where the
private party is take a service to a public party in the form of a bulk supply, such as a BuiltOperate-Transfer (BOT) project for a water coverage plant, or the management of live facilities
(e.g. hospital facilities) against a fee.
In other countries, specific sectors are excluded from the definition, particularly those sectors
which are subject to effective regulation or where there is extensive private sector enterprise,
such as in ICTTelecoms. In some countries disposition involving more limited risk transfer such
as management contracts are excluded from the definition for institutional reasons as the
authorities prefer that they fall under traditional procurement processes for goods and services.
For sample laws, go to PPP Legislation and Laws.

Types of Public-Private Partnership Agreements

Public-private partnerships (PPPs) take a wide range of forms varying in the extent of
involvement of and risk taken by the private party. The terms of a PPP are typicaly set out in a
contract or agreement to outline the responsibilities of each party and clearly allocate risk. The
graph below depicts the spectrum of PPP agreements

EXAMPLE
PARKS: Private maintenance and operations agreements for federal, state,
and local parks
The US Forest Service in Arizona turned over operations of the Crescent Moon/Red Rock
Crossing Recreation Area in Sedona, Arizona to Recreation Resource Management (RRM) in
1994. RRM operates the park under a public-private partnership with the U.S. Forest Service.
This long-running P3 partnership stands out because RRM prepared and published a case study
on the project in 2011. RRMs case study compared the privately-run Crescent Moon park to the
nearby Red Rock State Park. Red Rock State Park is operated by Arizona State Parks, a public
agency. RRM found that while the two parks in the study are geographically close and share
similar entry-fees, attendance and overall revenue numbers, Crescent Moon (operated under the
P3 agreement with RRM) returns close to $45,000 to the U.S. Forest Service each year in the
form of net revenue, while RRM claims the publicly operated Red Rock State Park operated by
Arizona State Parks costs the U.S. Forest Service $234,000 per year.