ÖPP

ÖPP, or Offentlig-Privat Partnerskap, is the Swedish term for public-private partnership (PPP). In a typical ÖPP arrangement, the public sector engages a private partner to design, finance, construct or rehabilitate an infrastructure asset or public service and to operate it over a long-term contract. The private partner often provides financing and is responsible for maintenance and lifecycle costs, with payments from the public sector based on availability or performance during the contract period.

Common forms include design-build-finance-operate (DBFO) agreements and build-operate-transfer (BOT) concessions. Contracts are usually long term, commonly 15 to 30 years, and specify service levels, performance criteria, and payments linked to the asset’s availability or quality. Under many ÖPP arrangements, assets remain owned by the public sector for the duration of the contract, with the private partner handling construction, financing and ongoing upkeep.

Rationale and debates surrounding ÖPP emphasize potential benefits such as access to private expertise and capital, risk transfer from the public sector, and the possibility of faster project delivery. Critics point to higher lifecycle costs, greater complexity, reduced transparency, and challenges in ensuring accountability and value for money. Public debt implications and the long-term burden of payment obligations are also discussed, along with concerns about competition, bargaining power, and renegotiation risks.

In Sweden, ÖPP contracts have been used for a range of large-scale projects, including transport infrastructure and public buildings. They are governed by national procurement law and EU procurement directives, with competitive tendering and clear performance criteria to ensure value for money and public oversight.