Public - private partnership (PPP)
A Public-Private Partnership (PPP) is critical to the success of blended finance mechanisms such as the debt-swap and the sovereign blue bond. The SeyCCAT Board includes representatives from government, private sector and civil society.
Private engagement in such a partnership is mandatory for attracting private capital investors, who will not be able to fund solely public institutions, due to internal donor policies.
- The private sector provides the capital
- Risk reduction mechanism through partial guarantees.
- Public debt can be leveraged.
- It requires the understanding of the factors that are important to all parties, to ensure that the agreement that is reached, satisfies all parties' concerns.