The project structure emanates from an iterative process of role, responsibility and risk allocation to the various parties. It is important not to lose sight of the key expectations of the various stakeholders before such a distribution of roles, responsibilities and risks.
To re-iterate, the private partner (and its investment associates) seek to be fairly compensated, in a sufficiently stable environment. The public entity will want to deliver the service in a sustainable manner, and to limit the possible abuses of monopoly power of the private partner. The public and the regulators expect transparent and fair practices that result in a favourable value proposition. Balancing these expectations will mean some trade-offs that have to be made among the various objectives. Various contract elements need to be defined, in addition to the risk allocation, to give shape to such a project structure.