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One of the most powerful ways to attract private capital in infrastructure is the contractual public private partnership model, also known as PPP. The chapter outlines the fundamental features of such contracts (among others, payment mechanisms and risks allocation), both for economic and social infrastructure, with a specific focus on the two dominant models (the tariff-based and the availability-based models). It discusses the main macroeconomic and microeconomic benefits of PPPs, and it suggests how to apply PPP in a more strategic way in order to generate value for society. The chapter also provides a focus on the application of PPP to social infrastructure, and in particular in the healthcare sector, where the model has been questioned, making it is salient to understand how to structure more balanced contracts in sectors that are critical to achieve SDGs.

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