Public Private Partnership Methods

883 Words4 Pages

Incremental partnering also allows the public to commission projects partly before the completion of the entire project.
- . Alliance model approach: where the public and private partners agree to jointly build, design, finance, maintain and operate the facilities.
The Public Private Partnership (PPP) methods of project delivery remain the effective and efficient way infrastructural projects (school, health facilities, potable water supply, power stations, housings, road construction, etc) delivery. It common to hear technical acronyms such as BOT, BOOT, BOO, BLT, BT, DOT etc among the public private partnership experts.
The Public Private Partnership (PPP) methods of project delivery remain the effective and most efficient way infrastructural …show more content…

Below are different types of models in Public private partnership based on NAPPP (2009).
a. Design-Build (DB): Under this model, the government contracts with a private partner to design and build a facility in accordance with the requirements set by the government. Upon completion, the government assumes responsibility for operating and maintaining the facility. This model is also referred to as Build- Transfer (BT), e.g. turnkey projects.
b. Design-Build-Maintain (DBM): This model is similar to Design-Build except that the private sector assists in the maintenance of the facility. The government agency retains responsibility for operations.
c. Design-Build-Operate (DBO): Under this model, the private sector designs and builds a facility. Once the facility is completed, the title for the new facility is transferred to the government agency, while the private sector operates the facility for a specified period. This model is also referred to as Build-Transfer-Operate …show more content…

Design-Build-Finance-Operate/Maintain (DBFO, DBFM or DBFO/M): Under this model, the private sector designs, builds, finances, operates and/or maintains a new facility under a long-term lease. At the end of the lease term, the facility is transferred to the government agency. In some countries, DBFO/M covers both BOO and BOOT. Due to the widely varying needs and specifics of different projects around the world, new variations of PPP models are constantly being formulated to match the preferred risk-reward structures of governments and private sector companies; these are simply some of the most common general arrangements. The above models of private sector involvement and participation have numerous variations, depending on the legal and regulatory frameworks, the nature of the company and the type of contract. The options differ in their allocation of risks and responsibilities between the public and private sectors, their complexity and duration there is no single best-option PPP mechanism for all projects; the variance in project specifications and stakeholders worldwide naturally begets variance in the appropriateness of different PPP mechanisms but the partnership experiments involved constitute the most challenging aspects for governments of service provision in many

Open Document