Types of ppp

Contracts for Goods and Services Utilities commonly source goods and services from private sector third parties, whether to purchase spare parts or stationery, or to procure civil works such as laying pipes or cables. Utilities may also contract out a particular service, such as customer service.

Concessions, Build-Operate-Transfer (BOT) Projects, and Design-Build-Operate (DBO) Projects are types of public-private partnerships that are output focused. BOT and DBO projects typically involve significant design and construction as well as long term operations, for new build (greenfield) or projects involving significant refurbishment and extension (brownfield).

Full divestiture, also known as, privatization, occurs when all or substantially all the interests of a government in a utility asset or a sector are transferred to the private sector.

Leases and Affermage Contracts Leases and Affermage Contracts Leases and affermage contracts are generally public-private sector arrangements under which the private operator is responsible for operating and maintaining the utility but not for financing the investment.

Operating agreements are also usual in relation to BOT/ concession arrangements, with the concessionaire sub-contracting the operations phase of the concession to an operator; Usually no transfer of employees to the contractor - the contractor will merely add a layer of management over the existing utility structure.

Utility Restructuring, Corporatization, Decentralization, Performance Contracts A government considering ways of improving performance in its utilities may seek to achieve this by involving the private sector through one the forms of PPP Project discussed in Agreements.