Menurut Wiliiam J. Parente, PPP adalah
"an agreement or contract, beetween a public entity and a private party, under which: (a) private party undertakes government function for specified period of time, (b) the private party receives compensation for performing the function, directly or indirectly, (c) the private party is liable for the risks arising from performing the function and, (d) the public facilites, land or other resources may be transferred or made available to the private party."
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