Operator Franchise

Government engages a contractor to provide certain services by operating and maintaining infrastructure owned by the government. The infrastructure used to provide the services is often uneconomic to duplicate, so ownership of the infrastructure remains with the government to avoid creating a private sector monopoly of indefinite duration. Instead, the franchise to be the monopoly provider of the services is recontested at regular intervals to ensure innovation and best value for money is obtained. Examples include the Victorian tram franchises, the Sydney ferries franchise and numerous bus franchises.