PPP Type

5.1  In general, there is no specific PPP type that characterizes all small projects. Small projects were found to be on the entire spectrum of PPP modes, ranging from management contracts all the way to concessions, with BOT and BOO PPP projects being common. The payment mechanisms are what distinguish many of the smaller projects from the larger ones. The payment mechanism usually depends upon the sector characteristics. In sectors like solid waste management and rural multi- sectoral infrastructure (e.g., PURA), projects are mostly net cost projects, with the government paying the private party to provide the services to the public. In PURA projects, for example, the standard contract allows for the levy of tariff for the services; however not all project contracts have followed this levy. In solid waste management projects, some local bodies levy trash collection or other charges on the population of the city that are, however, rarely cost covering. In solar rooftop energy projects and silo storage projects in India, the government buys the service or product fully. In accommodation projects for students, there is some amount of government subsidy but a larger proportion is acquired through rental income paid by the users.