Public-Private Partnership

According to the World Bank Public-Private Partnership Resource Center in one of its research works titled "PPP Basics: What and Why", Public-Private Partnership is "a long-term contract between a private party and a government entity, for providing a public asset or service, in which the private party bears significant risk and management responsibility, and remuneration is linked to performance. Transferring responsibility to the private sector for mobilizing finance for infrastructure investment is one of the major differences between PPPs and traditional procurement. Where this is the case, the private party to the PPP is responsible for identifying investors and developing the finance structure for the project".

In a Public-Private Partnership (PPP), parties must meticulously outline their terms based on the specific industries they intend to invest in. These agreements should clearly define the rights and obligations of each party. A comprehensive analysis of the country's legal and regulatory landscape is essential to ensure that the partnership aligns with enforceable laws. PPP agreements can encompass various contractual structures, including: Concession agreements with financing models like Build-Operate-Transfer (BOT) and Design-Build-Operate (DBO); Joint Venture Agreements; Leases and Affermage Contracts; Management/Operation and Maintenance Contracts; Contract Plans / Performance Contracts; etc.

In Nigeria, the National Council for Public Private Partnerships have reported that

PPPs have been used for delivery of services worldwide in sectors like, power, education, roads, aviation and even in some specific segments of defence services like facility maintenance and simulators procurement/training. A typical example of a PPP in Nigeria is the contractual agreement between FAAN and Bi-Courtney Aviation Services for the Build Operate and Transfer (BOT) of MMA2 domestic airport terminal in Lagos.