The PPP Act, 2015 defines a PPP as a commercial transaction between a Contracting Authority and a Private Party where the Private Party performs a function of the Contracting Authority on behalf of the Contracting Authority, for a specified period, and

1. Acquires the use of the property, equipment or other resource of the Contracting Authority for the purposes of executing the Agreement
2. Assumes substantial financial, technical and operational risks in connection with the performance of the function or use of the property; or
3. Receives a benefit for performing the function through payment by the Contracting Authority or charges or fees collected by the Private Party from the users of the infrastructure or service, or both.

Governments world over are faced with budget constraints and have adopted PPPs as a strategy to deliver infrastructure projects. In the same vein, Government of Uganda has adopted PPPs as a key strategy for partnering with the private sector to deliver public infrastructure projects and related services to attain Economic Growth and Development.

Well-structured PPP projects are expected to;

1. Help Government leverage Private Sector financing, expertise, innovations and efficiency;
2. Raise alternative financing for infrastructure projects that would otherwise not be implemented by Government due to limited resource envelope;
3. Provide better integration of Design, Construction, Operation and Maintenance of infrastructure projects in the contractual arrangements;
4. Optimal transfer of project risks across Government and private sector; and
5. Whole life approach to service delivery (whole life costing and better value for money).