PPP (Public Private Partnership) = partnership of public and private sectors. PPP is a way of procurement of a project, aiming at providing public service or infrastructure. PPP project usually describes the long-term project (up to 15, or even 30 years) where the performance of public service is entrusted to a private partner.

The level of involvement of the private partner differs from project to project. A common set-up is for the private partner to provide the design, build, finance, and operate the project (i.e. DBFO structure). Another common transaction is the project where the public infrastructure already exists, and private partner is selected to operate and maintain it in long term. In return, the public contracting authority entering into this contractual relationship, commits itself to make regular monthly payments throughout the duration of the contract (so-called availability fee), the payment of which will only start when the public service is provided by private partner (i.e. usually not during the construction).

The main reasons of PPP becoming an increasingly popular way of procuring public projects include higher efficiency compared to public procurement, and the possibility of implementing necessary projects even in the cases of insufficient budget resources for initial investment costs.