Public Private Partnership
Public Private Partnership (PPP) is a partnership between the public and private sectors on a development project, with appurtenant operation, of, for example, a road or a building.
Collaborative projects of this kind are usually organised around the need to solve a specific problem for a municipality, county, or government agency, and typically involves the construction, financing, maintenance, and, in some cases, also operation of the service or facility delivered to the end-user.
In a PPP project, the collaborative partner is selected following a contest. The private collaborative partner is responsible for projecting, constructing, financing, and maintaining a road for 20-30 years. The Norwegian Public Roads Administration is responsible for the planning, impact analysis, and oversight.
The private collaborative partner is usually put in charge of financing the project. Repayment may take the form of user contribution and/or contracted public lease. In most cases, the facility will revert back to public administration following the expiration of the contract period.
The use of Public Private Partnership (PPP) cuts the time needed to realise new road projects in half, and it is the most important measure in speeding up road construction in Norway.