skip to content

Section PS 3160 - Public private partnerships

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.

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

Read the document

Download

BDO can help you navigate the road ahead

Applying financial reporting standards can be quite complex. The BDO team can help you assess your situation and prepare for the opportunities and challenges involved.

Contact us today to start the conversation

This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our privacy statement for more information on the cookies we use and how to delete or block them.

Accept and close