2.4.1 The payment mechanism determines the payments that government makes to the private provider in a PPP project. This payment is often referred to as the unitary charge, as it is a payment for the delivery of units of service required by the public sector. The payment mechanism is at the heart of the PPP contract as it puts into financial effect the allocation of risk and responsibility between the public agency and the private sector.
2.4.2 The payment mechanism for any individual project will need, more than almost any other aspect of the PPP contract, to be tailored and structured to reflect the particular needs of the public agency, the users and the nature of the deal.