This section deals with agreements at the heart of a PPP transaction: the concession arrangement between the public sector and the private sector. In addition, it deals with the performance guarantee to the government provided by the private sector, this is in effect a guarantee of by a sponsor or a contractor (usually a private sector party who is both) of the performance by the project company.
In this report, a "concession agreement" will refer to contractual arrangements that gives the private company entity a right to operate the infrastructure asset. Depending on what PPP structure is adopted, such agreement may be also be called a BOT agreement, a lease or a licence.