11.2 Economic infrastructure

A number of the above areas generally apply to both social and economic infrastructure. However, there are a number of differences between economic and social infrastructure. The major differences are outlined below.

An economic infrastructure PPP typically involves a user-pays structure rather than a service charge structure which is most often relevant to social infrastructure. Typically, the user-pays structure involves the payment of tolls, fares or user charges for use by the public or by the business community of facilities such as roads, bridge, tunnels and potentially, ports, airports and trains/trams.

The revenues earned through user charges are expected to be sufficient to enable the private party to pay back, or substantially offset, the capital raised to fund construction of the facility, meet operating costs, pay the interest on the debt raised and give the required equity return.