3.3.4  Operations Phase Costs

Operations management costs are the ongoing administrative costs to the government of managing the project agreement with the PPP partner during the operations phase. These costs are less significant under either procurement approach relative to the design and construction period; however, under traditional procurement the government will incur more direct costs as it operates the infrastructure itself, or contracts the work with one or more companies. Under the Shadow Bid model, the public sector's role is again limited to monitoring the performance of the private partner operating the facility, according to the project agreement.