Public-Private Alliance

(PPA)

A Public-Private Alliance (PPA) is a contractual agreement between a public agency (federal, state, or local) and a private sector entity.

Through this agreement, the skills and assets of each sector (public and private) are shared in delivering a service or facility for the use of the general public. In addition to the combination of resources, each party shares in the risk and reward potential in the delivery of the service and/or facility.

The purpose of a Public-Private Alliance is to bring about greater developmental impacts through the combined strengths of multiple partners in order to address a development problem. The driving force is the recognition that each party is able to provide significant resources that the other does not have and that the parties can achieve greater value together, more efficiently than they could on their own.

Leveraging funding is an important benefit, but it may not necessarily be the primary consideration. Other benefits include access or broader access to markets, technology and special skills, fresh ideas and innovation, key host-country decision-makers, and increased efficiency in achieving development results as a consequence of all the above. In addition, since program risks are shared by all the partners, leveraging funding adds incentive for all partners to put in the necessary time, effort, and resources to ensure success. Each partner will define the value of the partnership in its own way, based on its organizational mandate and priorities. The bottom line is that partners must generate and exchange significant value, however defined, in order to cement their mutual commitment to the alliance and its sustainability.

FRESH Global is in a strategic position to foster these PPAs through its network.