The Full form of PPP is Public-Private Partnership. PPP involves collaboration between a government organization and a private-sector company that can be used to build, finance, and operate projects, such as telecommunication systems, public transportation networks, power plant, parks, and convention centres. Financing a project through a PPP (Public-Private Partnership) can benefit or allow a project to be completed in a specified time or make it a possibility in the first place.
Public-Private Partnership is a broad term and can be applied to any contract whether it is a simple, short term or a long-term that includes funding, building, planning, maintenance, operation, and divestiture. PPP arrangements are very useful in case of large projects that require highly-skilled workers and a significant amount of money to get started.
For example, a state government might be sometime heavily indebted and unable to undertake any capital-intensive building project, but on the other hand, a private company might be interested in funding for its construction in exchange for receiving the operational profits once the project is completed. PPPs typically have longer contract periods, i.e., from 25 to 30 years or longer. Financing generally comes partly from the private sector but also requires payments from the public sector or users as well over the project’s lifetime.