Public-private Partnership: 3 models

Arrangements between public & private parties

Public officials, private entrepreneurs and citizens are looking for new ways of creating the public domain and public services in cooperation with each other. Public-private partnerships and liberalization policies can be created if they add value aimed at the common good. The main challenge is to develop trust, a common language, common goals, and clear balance of target results, in order to improve each party’s strengths and advantages in the partnership and change of systems.
We distinguish three models of public-private cooperation:

Model one: Private financing of public projects

Whenever a more efficient or quicker way of reaching public goals is sought, private parties may contribute to government projects. Governments can assign some of their tasks and risks towards private parties, but remain responsible for the outcome. Examples are found in the building and exploitation of railroads, tunnels and bridges.

Model two: Public private partnerships

If a public or a private goal can only become feasible by participation of both parties, then a true partnership can come about. For instance if one of them does not have enough financial assets to carry out the project, or if the project itself requires participation of both parties.
Examples are revitalizing inner cities, real estate projects with an integrated public infrastructure, and other projects with a wide scope.

Model three: Responsible entrepreneurship

Also known as Corporate citizenship. A private party is committed to public goals and is realizing these, with or without public parties. This is frequently seen in urban development and public housing.