2.1.23 DBFO is neither a source of free money nor a means of implementing ill-conceived, unaffordable projects. While the private sector provides the capital funding for the project, this is ultimately recovered from:
a) Members of the public - These are financially free-standing projects undertaken by the private sector with cost-recovery by means of user charges imposed on the users (usually a member of the public). This charging model is typically used for toll roads.
b) The public sector - These are projects that involve the sale of services to the public sector, with costs recovered only from the public sector, e.g. in the defence related PPP projects.
c) Both members of the public and the public sector - These are projects for services delivered to the end users with the public agency sharing the costs so that user charges imposed on the end users remain affordable. This charging model is typical for the development and maintenance of the public agency's buildings which may also be rented out to interested third party users.