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Public-Private Partnerships
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PPP Unit
A specialized body within the government responsible for managing and overseeing the development of PPPs. It ensures consistency, efficiency, and expertise within the PPP framework. Examples: Units within finance ministries, dedicated PPP agencies.
DBFOM - Design-Build-Finance-Operate-Maintain
This type of PPP includes the responsibilities for designing, building, financing, operating, and maintaining a project within the concession agreement. Examples: Highways, urban transit systems.
DBFO - Design-Build-Finance-Operate
The private partner designs, builds, finances, and operates a facility for the duration of the concession. At the end of the concession, the facility is transferred back to the public entity. Examples: Prisons, hospitals, and schools.
BOT - Build-Operate-Transfer
In a BOT partnership, a private entity receives a concession to finance, build, and operate a project for a specified time period, and then transfer control back to the government. Examples: Toll roads, bridges, and airports.
BOO - Build-Own-Operate
A private entity finances, builds, and operates a project without transferring ownership to the public sector. Examples: Solar power plants, telecommunications networks.
MOT - Maintain-Operate-Transfer
Private entity is contracted to maintain and operate an existing facility, and will eventually transfer it back to the government. Examples: Existing toll roads, municipal facilities.
Lease
Public asset is leased to a private entity, which operates and maintains the asset while paying a lease fee. Control remains with the public sector. Examples: Airports, seaports.
Turnkey Project
In this type of project, the private sector is responsible for the complete design and construction of a facility. Once the facility is ready to be operational, it is handed over to the public sector. Examples: Government buildings, warehouses.
BOOT - Build-Own-Operate-Transfer
Similar to BOT, but the private entity also owns the project during the concession. Afterward, the project is transferred to the public sector. Examples: Power plants, water treatment facilities.
Concession
A concession gives a private entity the right to operate, maintain, and collect revenue from a public asset for a set period of time. After the concession ends, the control of the asset reverts to the public sector. Examples: Water utilities, public transportation.
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