The term 'private party' is used within the guidance material to describe the private sector entity with which government contracts. This may be a special purpose vehicle, created specifically for the purposes of the project, a subsidiary of an existing company, a joint venture or a trust structure. The private party may consist of a number of private sector parties (the 'consortium') who will be seeking to have their interests represented through the private party.
In the case of a privately financed public private partnership project, a consortium is likely to include equity investors/sponsors, a design and/or construction contractor, and the operator.
For some smaller projects, a much simpler consortium structure may apply. In such cases, the sponsor may be a large company that finances the project on its balance sheet. In some cases, the sponsor may refinance the project upon successful commissioning and an special purpose vehicle may be established at that stage.