Avalikprivaatne

Avalik-privaatne, sometimes written as avalikprivaatne, is a term used in Estonia to describe collaborative arrangements between public authorities and private sector actors intended to deliver public services or develop infrastructure. In practice it corresponds to the international concept of public-private partnerships (PPP).

These arrangements aim to combine public oversight and accountability with private sector expertise, efficiency and capital. They are used across sectors such as transportation (roads and rail), health care facilities, water and utilities, education facilities, and urban development.

Common models include concessions, where a private entity finances and operates a facility for a long period; design-build-operate or design-build-finance-operate contracts; and other integrated forms that transfer varying levels of risk to the private partner. Contracts specify performance standards, payment mechanisms, and risk-sharing arrangements.

Benefits often cited are faster project delivery, lifecycle cost savings, and access to private investment, while risks include long-term financial commitments, project complexity, less transparent decision-making, and potential misalignment between public welfare goals and private profit incentives.

Governance for avalik-privaatne projects emphasizes procurement rules, contract enforcement, transparency, and ongoing oversight to protect the public interest. In Estonia and the European Union, PPPs are typically subject to public procurement law, competition rules, and sector-specific regulations.

See also: Public-private partnership; PPP.