Maintenance Standards

PPP contracts, especially those that transfer O&M for a period of time to the private sector, will have extensive terms related to maintenance standards. The goal of the public sector could be to ensure that the leased facility meets or exceeds these standards, and that these standards are in line with the public interest. In addition to these legally binding obligations, the private partner will have other interests in keeping up with maintenance needs, because these provide the best long-term return on their investment-small maintenance costs now can avoid larger repair bills later. Also, extreme neglect will lead to the facility being less attractive to toll paying customers, where tolls are involved. However, the public sector needs to be vigilant that the standards are being adhered to (Buxbaum and Ortiz 2007).