ÖPPs

ÖPPs, short for Offentlig-Privat Partnerskap, is the Swedish term for public-private partnerships (PPPs). In this model, a public authority engages a private sector partner to deliver a public project or service over an extended period. The private partner typically handles design, construction, financing, operation, and maintenance, while the public sector pays for outputs or availability rather than for inputs at the outset.

Contracts are long-term, often two decades or longer. They usually include risk transfer to the private partner—construction, financial, and maintenance risks—along with performance-based payments tied to defined service levels. Ownership of the asset may remain with the public sector or transfer to the private partner for the contract duration; at its end, the asset is returned to the public sector after decommission or renewal.

ÖPPs are commonly used for infrastructure such as roads, bridges, tunnels, schools, hospitals, water and wastewater facilities, and other public facilities. The rationale is to leverage private finance, stimulate competition, and aim for longer-term lifecycle efficiency and risk management. They can also speed up delivery and shift some capacity and expertise from the public sector to the private sector.

Critics point to complexity, higher long-term cost, and challenges with transparency, accountability, and renegotiations. Value-for-money assessments are used to justify ÖPPs, but effectiveness depends on contract design, strong governance, and robust performance monitoring.

Globally, PPP arrangements are widely used in Europe, North America, and parts of Asia. In Sweden and other Nordic countries, ÖPPs have been a policy option to address infrastructure backlogs and to mobilize private capital while maintaining public control over strategic outcomes.