Long Term Contracts

2.1.9  PPP projects tend to be long-term, typically ranging from 15 to 30 years or more. The length of the contract will typically cover the entire economic life of the asset. This ensures that the private sector partner takes a whole life-cycle view for the development of the asset. The asset will then be designed, constructed, operated and maintained such that the whole lifecycle cost of the project is minimised. The private sector operator will also ensure that the asset is well maintained for its entire economic life.