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PPP General

The abbreviation PPP stands for ‘Public-Private Partnership’. PPP is a long-time partnership in which the government and the corporate sector, each retaining their own identity and responsibility, create a joint project on the basis of a clear and optimum allocation of duties and risks.

With PPP, the output desired by the government - the commissioning party - is the key element; a service instead of a product is expected from the private sector, the contracted party. The purpose of PPP is to obtain added value, i.e. a higher-quality finished product at the same price, or the same quality for less money. Both in the Netherlands and abroad, PPP has demonstrably created added value.

PPP can be applied to investment projects in the area of housing and infrastructure. The decision whether or not to opt for PPP is taken on the basis of an assessment tool, the "Public Private Comparator", used before inviting to tender.

DBFM(O)

DBFM(O) is the most frequent form of PPP. DBFM(O) stands for Design, Build, Finance, Maintain (and Operate). A DBFM(O) contract is an integrated form of contract, in which the commissioning party transfers various components of a building project, including the funding, to the contracted party. The funding for a project is the contracted party's responsibility; the commissioning party pays the contracted party periodically, based on previously agreed achievements. The contracted party is often a consortium consisting of various parties.