public-private partnership P3

A public-private partnership is an arrangement between a governmental entity and a private entity to finance a public project with private funds.

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The most common use of this arrangement in the United States is for highways, but it can be utilized on a variety of other infrastructure projects. In exchange for providing the financing, the private entity receives a share of the revenue generated by the project, such as tolls or fees, for a specified time period. Airports, telecommunications, power plants, and university housing are examples of how public-private partnerships are being deployed.