A Public Private Partnership (PPP) is an arrangement between the public and private sectors (consistent with a broad range of possible partnership structures) with clear agreement on shared objectives for the delivery of public infrastructure and/or public services by the private sector that would otherwise have been provided through traditional public sector procurement.

The PPP approach has the potential to offer value for money and timely delivery of infrastructure when applied to projects of the right scale, risk and operational profile.

One key aspect of the PPP approach is that risk is transferred to the party that can manage it best.

Under the National Development Plan for 2007-2013, it is estimated that PPPs will fund some €13.35 billion of Plan investment. This represents an average of 7.2 % p.a. of total investment over the seven years of the plan. The target of €13.35 billion comprises €11.21 billion for PPPs funded by future unitary payments and €2.14 billion to be paid for by user charges, such as road tolls.

The role of the Central PPP Unit in the Department of Finance is to facilitate the PPP process centrally by developing the general policy framework (including, where necessary, the legal framework) within which PPPs operate and by providing central guidance to Departments and other State authorities in that context.

Further information on PPPs in Ireland can be found on the Central PPP Unit’s website at www.ppp.gov.ie