3  Structure

This chapter discusses the options for PPP structures that are available to the government. The most appropriate option will depend on the risks and the responsibilities for the infrastructure project undertaken by the public sector and the private sector.

The options range from, on the one hand, a service agreement structure where the public sector is responsible for all aspects of the infrastructure project except for the obligations that it specially contracts to the public sector. On the other hand, a divestment of all infrastructure assets from the government's ownership and control, with the government maintaining any responsibilities through regulations. This guideline will focus on a structure that fall between these two extremes, the concession agreement structure. A concession agreement, usually in the form of a BOT or a variation of this, is what is generally understood as a PPP arrangement. Moreover, a concession structure is generally the most complex from a contractual and legal point of view. It is possible to understand the other PPP structures once the concession agreement structure is understood. The usual PPP options are set out below.

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9  Adapted from information kindly provided by Maria Lourdes Baclagon, BOT Center of Philippines.