Government support and guarantees for the implementation of public-private partnership projects

Government support and guarantees for the implementation of public-private partnership projects

A Public-Private Partnership (PPP) is a long-term, legally binding agreement between a public entity and a private company, under which the private party undertakes to provide comprehensive services that may include financing, design, construction, operation, and maintenance of public infrastructure. The private partner is compensated through user fees, payments from the public entity based on performance, or a combination of both.

PPP principle structure

PPP is widely considered an effective solution to address insufficient government funding, the lack of technical expertise in the public sector to maintain infrastructure, and the need for risk sharing of infrastructure projects. As a result, PPPs have been extensively implemented in infrastructure development across the globe. Moreover, a large and growing global PPP market has emerged to support infrastructure projects worldwide, playing a crucial role in promoting the sustainable development of developing countries.

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Mongolia
Project Finance & Public-Private Partnership (PPP)