What are the different contractual models for PPPs applied in Bangladesh?

A number of different contractual models of PPPs have been developed globally and are widely applied in projects. Each PPP model represents a different allocation of risk and responsibility between the public and private sector. These can differ in relation to size of investment by the private sector, the basis of the revenue stream, the responsibilities undertaken in relation to construction, operation, maintenance and service performance, ownership of asset and the length of the contract period. Where the public sector retains too much risk or it transfers most of it to the private sector than it falls outside the framework of a PPP.

The range of contractual models that typically fall under the PPP framework is set out in the figure below. The PPP contractual model is determined on a case by case basis following the conclusion of the feasibility and market engagement study that will determine the optimum option to deliver the public sector objectives through a viable, bankable and sustainable project for the private sector.