How it works
The Public-Private Partnership (PPP) concept is a procurement method that uses private investment to create or rebuild public infrastructure. It is a long-term contract between government entities, private investors, construction firms, and asset and operations managers.
The project is delivered by a consortium and repayment is long-term through user fees such as tolls, availability payments from the government client, or a combination of the two. The consortium is obligated to perform up to or above agreed contractual standards, or it will not be fully compensated.
In a PPP project, the consortium influence the project from the start, which facilitates innovation and solutions that enhance productivity and sustainability. In a PPP, the private sector also takes on more risk than in a traditional project, risk that private companies are often more suited to take on and manage.
The public client retains ownership of the asset and assumes responsibilities at the end of the contract term, which is usually 25-50 years.
We invest in projects during the higher risk development, construction and transition to operations phases. Once the project is proven to meet our customers’ requirements and in steady state operations, we typically divest the projects to long-term investors like pension funds.
Our ways of adding value
We work with our clients as their long-term partner, providing financial support and global expertise for the development, design, construction, and operation of projects.
- Building for a better society. We provide communities with safe transportation and state-of-the-art social infrastructure, while also creating jobs during the construction and operation of a project.
- Financial strength. We invest our own equity and secure financing for Public-Private Partnerships to deliver our promise to provide sustainable projects to the communities where we operate.
- Life cycle costing. Life cycle costing optimizes the balance between construction and long term operational costs and can deliver significant financial and environmental benefits. It considers the cost and environmental impact of materials, equipment and technology not only now but in the future.
- Long-term commitment. Our contract terms usually span 25-50 years. Capital improvements and ongoing maintenance during the contract period ensure that the asset is handed back to the client in optimal condition.
- Innovation and expertise. Through early involvement and long-term commitment, a PPP project unlocks private sector expertise and innovative solutions that drive higher value, lower cost, and accelerated delivery.
View some of our public-private-partnership projects in our projects section.