| Risk arising from the variation of output or capacity from expected. |
| The DBFO model is the most common form of PPP, involving the integration of four functions - Design, Build, Finance and Operate -within one PPP service provider. The PPP provider will raise financing from private financiers to develop the facilities needed to deliver services to the public sector. The provider will then build, maintain and operate the facilities to meet the public sector's requirements. |
| A notice published on GeBIZ inviting all interested bidders to participate in the PPP procurement tender. |
| Acts of God and other specified risks (e.g. terrorism) which are beyond the control of the parties to the contract and as a result of which a party is prevented from or delayed in performing any of its non-financial obligations under the contract. |
| Refers to the tender documentation provided to interested bidders. It contains all necessary information necessary for bidders submit responsive Tender Proposals. |
| An agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time. |
| The output specifications define the services that are required from the private provider, in terms of what needs to be achieved, and not how the services or outputs should be achieved. |
| PPP refers to long-term partnering relationships between the public and private sector to deliver services. In PPP, the public sector will focus on acquiring services at the most cost-effective basis, rather than directly owning and operating assets. |
| The chance of an event occurring which would cause actual project circumstances to differ from those assumed when forecasting project benefit and costs. |
| The allocation of responsibility for dealing with the consequences of each risk to one of the parties to the contract, or agreeing to deal with the risk through a specified mechanism which may involve sharing the risk. |
| The identification, assessment, allocation, mitigation and monitoring of risks associated with a project. The aim is to reduce their variability and impact. |
| In establishing a project consortium, the sponsor or sponsors typically establish the private party in the form of a special purpose vehicle (SPV) which contracts with government. The SPV is simply an entity created to act as the legal manifestation of a project consortium. |
| A single payment made in each period during the term of the PPP contract. |
| The period of time over which an asset is expected to be used by the enterprise or the number of production or similar units expected to be obtained from the asset by the enterprise. |
| Total cost of a project, including development cost and operating (recurrent) cost, over its useful economic life. |