The table below sets out the allocation of rights, responsibilities and risks for an infrastructure project between the public sector and the private sector under the different PPP options.10 This rest of this guideline will then go on to describe the concession model in detail.11
Structure | Public Sector | Private Sector |
Infrastructure asset ownership. Right to cash flow of the infrastructure asset. Operates and maintains the infrastructure asset. Responsible for rehabilitation and expansion. Sets quality and performance standards. Provides the financing. Agreement enforcement and control. | Provide inputs, performs specific services according to the quality and performance standards. | |
Management agreement | Infrastructure asset ownership. Right to cash flow of the infrastructure asset. Responsible for rehabilitation and expansion. Sets quality and performance standards. Provides the financing. Agreement enforcement and control. | Operates and maintains the infrastructure asset.
|
Lease | Infrastructure asset ownership. Responsible for rehabilitation and expansion. Sets quality and performance standards. Provides the financing. Agreement enforcement and control. | Right to cash flow of the infrastructure asset. Operates and maintains the infrastructure asset. |
Infrastructure asset ownership on expiry of the concession. Sets quality and performance standards. Agreement enforcement and control. | Infrastructure asset ownership during the concession period. Right to cash flow of the infrastructure asset. Operates and maintains the infrastructure asset. Responsible for rehabilitation and expansion. Provides the financing. | |
Divesture | Sets quality and performance standards. Licence enforcement and control (if any). Regulation. | Infrastructure asset ownership. Right to cash flow of the infrastructure asset. Operates and maintains the infrastructure asset. Responsible for rehabilitation and expansion. Provides the financing. |
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10 Ibid
11 The reason for this is outline in more detail below.