In the current phase of ever increasing population census worldwide, greater expectations, budgetary constraints and demand from the society, governments are currently facing an escalating amount of pressure from the society to provide new and improved infrastructure services and projects without having to use public funds. In most countries especially developing countries, the financial requirements of developing new and improved infrastructures outstrip the available resources. Having all infrastructure needs met is a critical and continued process in economic development. Because most governments are unable to meet the financial demands of these development projects, they are forced to seek financial investors who will make the projects successful.  In seeking investment funding, governments are forced to enter into public-private partnership for the success of infrastructure projects. A public private partnership is a contractual arrangement where the private sector is tasked with the responsibility of carrying out governmental functions that concern infrastructure development as well as service delivery.

In these kinds of contractual arrangements, the administration also employs the use of state property and assumed the risks of the same on behalf of the government (Hodge & Greve 2007). With this arrangement, the government manages to provide infrastructure services and retains a vital position as the main purchaser and enabler of the project. A primary motivation for states to consider private-private partnerships is the potential for bringing new financing sources into meeting public infrastructure. However, private-public financing is not only beneficial to the state and its citizens, investors on the other hand have a lot to benefit from such kinds of arrangements and that is why finding investors in PPP have become an easy task presently.

One of the main attractions of being part of the PPP lies in the potential to improve the overall value for money (Hodge & Greve 2016). When a country has well-built facilities and infrastructures, there is an increased flow of money, increase in monetary value and thus investors are able to get good returns from what they put in. PPPs have the ability to improve returns on what is invested and thus an increase in the value for money would be a key benefit for all investors.

In public-private partnerships, the risk is always transferred to the public sector and not private individuals who choose to invest in particular administrations. In simple terms, PPPs provide insurance against the risk of loss to private investors such that in the event of loss, it is the administration that suffers the loss yet private investors and exempted. Investors can still count on acquiring returns in a PPP thus increasing overall efficiency for their money.

Optimizing the cost for private partners is another benefit that accrues to every private investor and acts as one of the attractions considered before joining a PPP (Leiringer 2006). Well-structured PPPs build robust incentives that optimize costs for every partner but with high returns for private partners. For instance, conventional project bidders could be advised to design a structure using technical solutions or build a quality structure that may aid in cost reduction in the short term but in the long term lead to high cost of maintenance which is eventually beneficial to private partners. In such kind of scenario, private partners might end up renewing project terms with long term benefits accruing to them only.

These are the reasons why public-private partnerships are seeing a large increase in investors in the past few years both in local and state governments. These reasons rely heavily on private partner benefits making more and more investors wanting to be part of it.