The government's purchase of public services is a part of government procurement.
Generalized PPP(Public-Private-Partnership), also known as 3P mode, is a public-private partnership mode and a project financing mode of public infrastructure. Under this model, private enterprises are encouraged to cooperate with the government and participate in the construction of public infrastructure. Through this way of cooperation, partners can achieve more favorable results than expected by individual actions. When partners participate in a project, the government does not transfer all the responsibilities of the project to private enterprises, but all partners share the responsibilities and financing risks. The two parties shall first define the responsibilities and risks shared by * * * through an agreement, and then define the rights and obligations of all parties in each process of the project, so as to maximize the advantages of all parties, free the construction from many interference and restrictions of government administration, and give full play to the advantages of private capital in resource integration and management.
According to this broad concept, PPP refers to allowing resources held by non-public sectors to participate in the provision of public goods and services in the process of cooperation between the public sector and the private sector, thus realizing the functions of the public sector and bringing benefits to the private sector. Its management mode includes many concrete forms consistent with this. Through this process of cooperation and management, we can provide public goods and services to the society more effectively, while not excluding and properly meeting the profit targets of private sector investment, so that limited resources can play a greater role.
In a narrow sense, PPP refers to a public service development and operation mode in which the government and the private sector form a special purpose organization (SPV), introduce social capital, * * * jointly design and develop, * * * jointly take risks, cooperate all the way, and then hand it over to the government after the expiration.