Jurisdiction(s):
United Kingdom

Key definition

PPP definition

What does PPP mean? A public–private partnership (PPP) is a long-term arrangement where a contracting authority engages a private consortium to design, build, finance and operate or maintain public infrastructure or services, with risk and reward allocated by contract. PPP is a descriptive umbrella term, not a distinct legal form; the governing rights arise from the project agreement and the applicable public procurement or concession regimes. PPPs are commonly delivered via a special purpose vehicle (SPV) owned by private sponsors (occasionally with a public share or joint‑venture element), financed on a limited‑recourse project finance basis. Typical features include 20–30 year terms, performance-based payment (unitary/availability...

UK waste PFI/PPP projects: structure, Procurement Act 2023 procurement, standard risk allocation and waste‑specific risks for local authority energy‑from‑waste and disposal services

Published by a LexisNexis Environment expert

Practice notes

Ambitions to cut the volume of waste sent to landfill, alongside technological progress, have prompted a new generation of waste infrastructure across the UK. Typically, there are two principal contracting models for such schemes:

waste Private Finance Initiative (PFI) and Public-Private Partnership (PPP) infrastructure contracts; and
merchant waste infrastructure contracts

This Practice Note centres on waste PFI/PPP infrastructure contracts. For background on waste projects, including common project types, see: Waste projects—overview.

Waste PFI/PPP projects

Waste PFI/PPP projects are long-term agreements between public sector bodies and a private sector provider, under which the public sector outsources its waste management services and waste to an operator that agrees to take some (or all) of that body’s waste. The private partner generally designs, builds, finances, maintains and operates the waste infrastructure assets and related services, and typically bears the associated construction, operational and maintenance risks. PFI and PPP share very similar traits, though the key distinction lies in how the project is funded. For more detail, see: PFI/PPP finance guidance. These arrangements can be attractive to a public body because it transfers many of the...

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Web page updated on 22/05/2026

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