Module 2 – The PPP Structure and Models

Newcomers to PPPs are often confused by the many types of PPP models used. Indeed, there are large differences between these models. Most writings on PPPs focus on specific models of interest in a particular sector. Some seem to equate a specific model, such as BOT, with PPPs in general. This Module provides an introduction to the basic structure of PPP models and describes key models in more detail. It should be sufficient to help newcomers navigate the maze of abbreviations that they encounter, such as BOT, BROT, BOO, PFI, etc.

IDevice Icon Objectives of Module 2
On completion of this module, you should have a basic understanding of:
  • the typical structure of PPP projects
  • the reasons for special purpose vehicles and joint ventures, and
  • the basic features and the pros and cons of the most common PPP models, such as management contracts, turnkey, affermage/lease, concessions (franchise, BOT, BROT) and private ownership of assets (BOO, PFI, divestiture).

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