2.2. PPP Models

A wide spectrum of models has emerged to enable private sector participation in providing infrastructure facilities and services. The models vary from short-term simple management contracts (with or without investment requirements), long-term and very complex BOT form, to divestiture. These models vary mainly by:
  • Ownership of capital assets
  • Responsibility for investment
  • Assumption of risks, and
  • Duration of contract.
The PPP models can be classified into five broad categories in order of generally (but not always) increased involvement and assumption of risks by the private sector. The five broad categorisations are:
  • Supply and management contracts
  • Turnkey projects
  • Affermage/Lease
  • Concessions
  • Private ownership of assets.

Copyright © 2008 by Transport Policy and Development Section, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).