2.3. Review

IDevice Icon Review of Module 2 on PPP Structure and Models

Key messages learnt in Module 2 include:

  • A wide spectrum of PPP models has emerged. These models vary by ownership of capital assets, responsibility for investment, assumption of risks and duration of contract. However, there is no single PPP model that can satisfy all conditions concerning a project's locational setting and its technical and financial features. The most suitable model should be selected taking into account country's political, legal and socio-cultural circumstances and the financial and technical features of the projects and sectors concerned.
  • Clear policy guidelines of government are necessary on the type of partnerships for different types of projects. Governments consider different types of PPP models and their general guidelines taking into account the appropriateness of models in a given context. The guidelines in respect of PPP models can be specified in the government's PPP policy framework or in the country's legal instruments.
  • Recognizing the complexities of some type of PPP models such as the BOT model, attention may be placed on more practical forms of private participation aimed at increasing the efficiency of existing assets through improved operation and modernization. In case of new projects with high commercial risk, models or contractual provisions that allow lesser burden on the private sector is more realistic, particularly in the early years of PPP development in a country.

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