Ultimately, the cost of infrastructure has to be borne by its users or by taxpayers, current or future ones (aside from the limited concessionary component of foreign aid). The investments of public infrastructure firms have traditionally been financed from the public budget (through taxing or borrowing), possibly with a contribution from the enterprises' retained earnings (consumers). Funding by future taxpayers and/or consumers occurs when the infrastructure company borrows money, to be repaid from future revenue. Public infrastructure companies may do this by issuing bonds or shares or borrowing directly from commercial banks or the government. These options are only available to well-managed infrastructure firms in favorable investment climates.

PPP offers alternatives to attract new sources of private financing and management while maintaining a public presence in ownership and strategic policy setting.