Explanation:

To understand the PPP concept, we must know its fundamental characteristics. Some of these are discussed in detail below:

Service-Oriented: The PPP approach deals with the facilitation of long-term public services. It includes roads for transportation, dams for electricity and water supply and street lights for lighting.
Whole Life Costing: In the PPP model, the project’s total cost is computed at once for its entire life span. Thus, taking into consideration the initial capital expenditure, repair and maintenance expenses, modification expense and the eventual disposition cost.
Innovation: With the involvement of the private firms, the PPP approach also initiates the implications of creativity and new technology to the infrastructure projects.
Participants: The two parties involved in the public-private alliance are; the government and the respective private company.
Risk Allocation: Infrastructure projects involve high risk; thus, PPP helps the government to transfer this risk to private firms.
Long-term Relationship: These projects are usually for years; therefore, the government authority and the private entity remains associated for an extended period.
Resource Sharing: The capital, financial, design and other resources required, are shared between the government and the firm for successful project accomplished.