2.2.2 The range of PPP models

There is no preferred or standard model for PPP projects. For any given project, the model is determined by a number of factors, such as responses to questions about core services, value for money and the public interest.

The infrastructure projects implemented to date across jurisdictions cover a variety of industry sectors. Table 2 provides examples of PPP models used.

Table 2: Examples of PPP models

Model

DBFM

DBFO

Private party role

Infrastructure accommodation services and ancillary services

Infrastructure and service delivery to users

Government role

Delivery of core public services

No operational role

Infrastructure finance

Private

Private

Example

Hospitals, schools, prisons, courts

Roads

The objective is to achieve effective and efficient value for money outcomes. This must remain the aim, rather than a desire to promote any particular model.

The objective is to achieve effective and efficient value for money outcomes. This must remain the objective, rather than a desire to promote any particular model. A focus on the output specifications, the public interest, the capabilities of both the public and private sectors, optimal risk allocation and commercial viability,will indicate the most appropriate model for a particular project.

An important tool to determine the appropriate model is a Procurement Options Analysis. This is a document that analyses the appropriateness of various procurement methods for a particular project and provides guidance to help government decide on the most appropriate procurement method for the project. Further information on the Procurement Options Analysis is provided in Section 3.1.2.