The term “Public–Private Partnership” describes a range of long-term contracts among public and private entities in the context of infrastructure and other public services. A PPP project is designed to motivate the private sector to invest in government projects and obtain its investment along with profit at a given rate via charging a user fee or tariff for consumers in the long-term.

From an economic point of view, PPP projects will evolve new paths for the private sector to invest in the public sector and sustain long-term turnover. These private investments would create jobs, build capacity of public sector employees, spur innovation, provide essential infrastructure and services, boost the economy and strengthen standards in public and corporate governance. Moreover, PPP projects will provide opportunities for financial institutions to invest their money/reserves in these projects thereby providing an opportunity of restricting the outflow of money from Afghanistan.