What is PPP?

Project of public-private partnership or the so-called PPP is generally used as a term defining a longterm form of cooperation between public authorities and private sector. The purpose of this cooperation is to effectively ensure high quality infrastructure and public services for the citizens.

To cut a long story short, the PPP enables the public sector to use the investments from the private sector and the state budget resources for financing other public infrastructures and services. The public sector benefits from these projects by gaining a know-how and learning about new work methods commonly used in the private sector.

The public-private partnership model allows the public authority to provide construction and consequent maintenance and operation of the infrastructure. The development of the infrastructure is financially demanding and it is necessary to complete it in a short period of time. The public-private partnership projects are usually agreed for a long period of time (30 years for the R1 project) and the effectiveness of the public-private partnership results from the synergy existing between the individual services offered (design, financing and management, construction, maintenance and operation), which are under the umbrella of one private partner.

Abroad, the PPP projects are used to develop and operate not only road infrastructure, but also aiports, city lighting, retirement houses, etc. PPP projects have long term tradition for example in Great Britain or Northern Ireland, where PPP projects started being used towards the end of the 1980s. Holland, Portugal, France, USA, Canada and other countries started applying the PPP projects in the late 1990s.

Company Granvia, a.s., is a member of the Slovak Association of PPP. The main purpose of this body is to support and further develop PPP projects in Slovak republic.