1. Home
  2. PPP Arrangements/Types of PPP Agreements
Page Specific Disclaimer

*Note: Although the key features of each category are summarized, there is overlap between the categories and the name given to a particular agreement may not reflect this classic categorization. Care should also be taken to identify whether a specific classification is enshrined in the laws of the host country, as in the case of many civil law jurisdictions where there are strict definitions of "concessions" and "affermages". The sample agreements included in this section are not the full range of agreements associated with infrastructure projects. They agreements are NOT intended to be used as "models". Legal advice should be sought in the preparation and drafting of an agreement to ensure that it is appropriate and workable in the circumstances of a particular project, sector and country. Find Terms and Conditions of this website here.

Keywords
Agreements
Corporatization
Affermage
Operation and Maintenance
Joint Venture
Full Divesture
Divestiture
Concession
Contract
Standard agreements
Perfomance contract
Management contract
image
Photo Credit:   Octávio Frias de Oliveira Bridge by © Luciano Silva. CC BY-NC 2.0 https://creat…

PPP Arrangements/Types of PPP Agreements

Public-private partnerships (PPPs) take a wide range of forms varying in the extent of involvement of and risk taken by the private party. The terms of a PPP are typically set out in a contract or agreement to outline the responsibilities of each party and clearly allocate risk. The graph below depicts the spectrum of PPP agreements. 

Public Owns and Operates Assets Public Private Partnerships Private Sector Owns and Operates Assets Low High Extent of Private Sector Participation

 

 

Utility Restructuring, Corporatization,… A government considering ways of improving performance in its utilities may seek to achieve this by involving the… more
Civil Works and Service Contracts Utilities commonly source goods and services from private sector third parties, whether to purchase spare parts or… more
Management/Operation and Maintenance Contracts Management contracts and Operation and Maintenance (O&M) contracts are contracts governing a type of public-private… more
Leases and Affermage Contracts Leases and affermage contracts are generally public-private sector arrangements under which the private operator is… more
Concessions Build-Operate-Transfer (BOT) and… Concessions, Build-Operate-Transfer (BOT) Projects, and Design-Build-Operate (DBO) Projects are types of public-private… more
Joint Ventures / Government Shareholding in… This section does not focus on the relationship between consortium members bidding on a project where they may decide… more
Full Divestiture / Privatization Full divestiture, also known as, privatization, occurs when all or substantially all the interests of a government in a… more
Contract Plans / Performance Contracts Whatever model of reform that is chosen for reforming public utilities, it has been found that these reforms can be… more
Standardized Agreements, Bidding Documents and… There has been a long tradition of the use of standardized agreements for the procurement of goods and services for… more
Note/s:

*Note: Although the key features of each category are summarized, there is overlap between the categories and the name given to a particular agreement may not reflect this classic categorization. Care should also be taken to identify whether a specific classification is enshrined in the laws of the host country, as in the case of many civil law jurisdictions where there are strict definitions of "concessions" and "affermages". The sample agreements included in this section are not the full range of agreements associated with infrastructure projects. They agreements are NOT intended to be used as "models". Legal advice should be sought in the preparation and drafting of an agreement to ensure that it is appropriate and workable in the circumstances of a particular project, sector and country. Find Terms and Conditions of this website here.