The type of project is only half the story; sitting alongside these different types of projects are broad categories of contractual approach. We have identified the following four approaches:
∙ Partnership: A partnership is a contractual approach where both the public and private parties have a shared interest in the risks and benefits of a project.
∙ Concession: A concession is a contractual approach where a public party, usually the state, gives a third party the right to use or develop land or property for a specific purpose and period.
∙ License: A license is given where a party, usually the state, gives a third party the right to own or use something.
∙ Privatization: Privatization refers to the transfer of assets and/or operations from the public sector to private ownership and management. In many circumstances in parallel with the privatization process, the state will put in place a regulatory framework to control things such as prices and minimum service standards.