Section PS 3160 - Public Private Partnerships

December 01, 2021

Public private partnerships, also known as P3s, are an alternative finance and procurement model where the public sector entity procures infrastructure using a private sector partner. The private sector partner’s obligations include requirements to:

  • design, build, acquire, or better new or existing infrastructure;
  • finance the transaction past the point where the infrastructure is ready for use; and
  • operate or maintain the infrastructure.

This standard does not apply to:

  • traditionally procured infrastructure where the public sector entity controls the asset and bears the associated construction and financial risks;
  • leased infrastructure that does not satisfy the criteria for recognition of an infrastructure asset as part of a public private partnership agreement;
  • operating and maintenance arrangements with a private sector partner where it is not necessary to design, build, acquire, better, or finance public infrastructure
  • public private partnerships where there is no financing required by the private sector past the point where the infrastructure is ready for use;
  • write-downs of infrastructure; or
  • accounting for and reporting a public sector entity’s interest in a partnership where the partners cooperate in achieving significant, clearly defined common goals.

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To see the business impact of the new P3 standard, see this infographic

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