The terms PPP (Public-Private Partnership), privatisation, regular procurement, and EPC+F (Engineering, Procurement, Construction, and Finance) each describe different methods for developing and managing public infrastructure and services involving the private sector (also known as 'private sector participation in infrastructure').

Understanding the distinctions between these private sector participation concepts is essential to understanding the differences between PPPs.  

Public-private partnerships (PPPs) involve a contractual arrangement between public and private entities. The private sector partner plays a crucial role, undertaking to finance, build, and operate a project for a defined period during which it aims to recover its investment and earn a profit. This involvement of the private sector is key to leveraging private sector efficiency and capital investment, enabling innovative approaches to public service and infrastructure delivery, and appropriately sharing risks between public and private entities.

Regular procurement is the conventional method for the government to contract works, goods, or services. The government fully funds, owns, and controls all aspects of procurement and contracting companies to deliver projects or services without transferring significant operation risks or management responsibilities.

EPC+F (Engineering, Procurement, Construction, and Finance) is a typical contracting arrangement in which the contractor (private party) is responsible for all the activities from design to procurement and construction to financing. The contractor delivers a complete facility to suit the public partner's requirements, which the contractor finances until project completion. EPC+F shares some characteristics with PPPs regarding private sector involvement in financing. However, the risk and operational responsibilities revert to the public sector upon completion, e.g., construction, unlike in PPPs, where often a majority of risks are allocated to the private party over a long operational phase.

Privatisation differs from regular procurement, PPPs, and EPC+ F. Privatisation involves permanently transferring ownership, property, or business from the government to the private sector. The extent of privatisation can range from minor, partial sell-offs to a complete, permanent transfer of ownership and control.

If you are interested in understanding the characteristics of PPPs and how they differ from other project procurement options, we highly recommend visiting our resource page. There, you can access valuable free resources and a free PPP training