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.