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Forms of  Public Private Partnerships

Atlantic Connection 2011  Roundtable Discussion Public Private Partnerships: What's in it for my Government?". 6th Annual Economic & Financial Development Conference July 13-15, 2011 The Biltmore Hotel Coral Gables, Florida. Forms of  Public Private Partnerships.

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Forms of  Public Private Partnerships

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  1. Atlantic Connection 2011 Roundtable Discussion Public Private Partnerships: What's in it for my Government?" 6th Annual Economic & Financial Development ConferenceJuly 13-15, 2011The Biltmore HotelCoral Gables, Florida

  2. Forms of  Public Private Partnerships

  3. Forms of Public Private Partnerships • TDC – Traditional Design and Construction • The government, as principal, sets out project requirements before inviting tenders for the design and construction of the project. Private sector contractors place bids to design the project, and construct it for an agreed sum, which may be fixed or subject to escalation. • O&M – Operation and Maintenance Contract • These projects involve the private sector operating a publicly-owned facility under contract with the government.

  4. Forms of Public Private Partnerships • LDO – Lease - Develop - Operate • This type of project involves a private developer being given a long-term lease to operate and expand an existing facility. The private developer agrees to invest in facility improvements and can recover the investment plus a reasonable return over the term of the lease. • BOM – Build - Own - Maintain • This type of arrangement involves the private sector developer building, owning and maintaining a facility. The government leases the facility and operates it using public sector staff.

  5. Forms of Public Private Partnerships • BOOT – Build - Own - Operate - Transfer • Involves a private developer financing, building, owning and operating a facility for a specified period. At the expiration of the specified period, the facility is returned to the government. • BOLT – Build - Own - Lease - Transfer • The government grants the right to finance and build a project which is then leased back to the government for an agreed term and fee. The facility is operated by the government. At the end of the agreed term, the project is transferred to the government.

  6. Forms of Public Private Partnerships • BOO – Build - Own - Operate • Operates similarly to a BOOT project, except that the private sector owns the facility in perpetuity. The developer may be subject to regulatory constraints on operations and, in some cases, pricing. The long term right to operate the facility provides the developer with significant financial incentive for the capital investment in the facility. • BBO – Buy - Build - Operate • The governments sells the facility to the private business. The private business refurbishes and operates the facility.

  7. Forms of Public Private Partnerships • DB – Design - Build • The government contracts with a private party to design and build a facility in accordance with the requirements set by the government. After completing the facility, the government assumes the responsibility for operating and maintaining the facility. • DBO – Design - Build - Operate • A single contract is awarded to a private business which designs, builds, and operates the public facility, but the public retains legal ownership.

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