In this study we define the style of procurement as follows:
'Public-Private Partnerships' (PPPs) are defined as a contracting arrangement in which a private party, normally a consortium structured around a Special Purpose Vehicle (SPV), takes responsibility for financing and long term maintenance or operation of a facility to provide long term service outcomes. This may involve the private entity taking responsibility for the design and construction of a component of new infrastructure; and/or taking over a long-term lease or concession over existing assets; and/or the development of a new long-term contract to operate and manage the infrastructure. Typical forms of procurement include: Design, Build, Finance and Operate/Maintain (DBFO/M), Build-Own-Operate and Transfer (BOOT) or Build-Own-Operate (BOO). A key component of such arrangements is that there is a requirement to pay only for defined assets or services when they are delivered;
'Traditional projects' are defined to be those capital projects that are financed by government through a short term design and construct contract. Ongoing operation of these facilities and responsibility for service delivery remains with government departments and/or agencies. Typical forms of procurement include: Traditional lump sum fixed price contracts, guaranteed maximum price contracts, Design and Build (DB) contracts and Alliances.