​Sector-Specific Content on Climate-Smart

Find more sector-specific resources on Climate-Smart PPPs in these sections:

Or view the quick snapshots of the sections below:

Energy

For more information, visit the section on Toolkits, see Renewable Energy Projects by Resource (Solar Power, Wind Power, Hydropower, Biomass and Geothermal) or see Water Projects Using Renewable Energy.

Renewable Energy Policies, Laws and Regulations

The recent growth of the RE market has been driven to a large extent by policies, laws and regulations that encourage private investment in RE. Often these approaches are combined in order to optimize the benefits of several mechanisms.

Key regulatory and pricing mechanisms to promote the uptake of RE include:

  • National RE targets - Legal requirement to produce a certain portion of energy from RE sources together with a timeline by which the target has to be reached.

  • Feed-in tariffs (FiT)/feed-in premiums (FiP) - FiT and FiP guarantee the purchase of generated RE at a fixed price or premium for a defined period in time.

  • Quota Obligations or Renewable Portfolio Standards (RPS) - Requirements for utilities to source specific percentages from RE sources.

  • Grid Access Provisions - Provisions that give RE producers facilitated access to the grid, e.g. through mandated grid access or reduced transmission fees.

  • Auction Schemes - Public competitive bidding for procuring new RE capacity at the lowest possible price.

Global

Reference: IEA/IRENA Global Renewable Energy Policies and Measures Database - International Renewable Energy Agency (IRENA) maintains a joint database with the International Energy Agency (IEA) for policies and measures pertaining to renewable energy from around the world. The database is searchable by country and sector.

Regional

European Union

Reference: EBRD - Renewable Development Initiative for EBRD: Funded by USAID, this website tracks the latest developments of 29 countries located throughout Central and Eastern Europe and the Former Soviet Union and serves as an information resource to project developers, policymakers and researchers.

Reference: European Commission – Renewable Energy: This site on renewable energy by the European Commission contains links to the policy framework of the European Union as well as the Renewable Energy Directive.

Reference: European Union Renewable Energy Legislation: Overview of the secondary EU legislation that falls under the legislative competence of DG ENER and that is currently in force (split by policy areas). Last updated on 19 December 2014.

Reference: RES Legal Europe – Legal Sources on Renewable Energy - RES LEGAL Europe is a professionally edited and free of charge online database on support schemes, grid issues and policies regarding renewable energy sources in the EU 28 Member States, the EFTA Countries and some EU Accession Countries. The database covers all three energy sectors: electricity, heating & cooling and transport. It provides a quick overview of the different national regulations regarding renewable energy sources in a clear, concise and convenient way and links to the original legal sources in their original language as well as link to a translation of the law if available.

National

Brazil

Brazil introduced an auction system to procure electricity in 2004 (Law no. 10.848/2004, and Decree no 5163/2004) for the market regulated by ANEEL, the Brazilian Electricity Regulatory Agency.

In the same year EPE – Empresa de Pesquisa Energética was created (Law no. 10.847). The EPE Web Page on Energy Auctions provides information and updates on the Brazilian energy auctions organized by ANEEL as well as links to Laws and Regulations in the Brazilian Energy Sector.

Alternative Energy Auction of July 2011 – Regulation Portaria MME 113 of Feb 1, 2011 - Authorizes ANEEL to organize alternative energy auctions and provides pre-qualification criteria for developers/investors interested in participating in the auction. The capacity to be awarded and the types of energy sources to be promoted at the auctions are defined by MME - Ministerio de Minas e Energia. All types of auctions are conducted by CCEE – Camara de Comercialização de Energía Elétrica, a regulated non- profit entity formed by agents from the power market, on behalf of ANEEL.

Further to the auction-based scheme, a new FIT-scheme has been introduced by the Brazilian government in December 2015 to promote distributed power generation from renewable sources by consumers (Executive Order 538/2015).

For more details see The Brazilian Power Market: An Interesting Investment Regime for Onshore Wind and Solar Power? Fieldfisher LLP, April 2016.

Chile

Chile’s RE incentive scheme is based on several different laws, including Law 20257 (Ley de Energías Renovables No Convencionales) as amended by Law 20701 (Procedimiento para Otogar Concesiones Eléctricas) and Law 20018 (Modifica el Marco Normativo del Sector Electrico), as amended by Law 20805 (Perfecciona el Sistema de Licitaciones de Suministro Eléctrico para Clientes Sujetos a Regulaciones de Precios). For more details see Renewable Energy in Latin America: Chile, Norton Rose Fulbright, 2017.

Germany

The Renewable Energy Sources Act, also referred to as Renewable Energy Law (Erneuerbare Energien Gesetz – EEG) of 2000 as amended through July 2017 sets out the main support scheme for electricity generation from wind, hydro, solar, biomass and sewage gas combustion, as well as geothermal energy. It used to be based on a FiT scheme and has recently introduced an auction model for utility-scale projects.

United States

Reference: United States: Incentives and Policies for Renewable Energy and Energy Efficiency - The Database of State Incentives for Renewables & Efficiency (DSIRE) is a comprehensive source of information on state, federal, local, and utility incentives and policies that support renewable energy and energy efficiency. Established in 1995 and funded by the U.S. Department of Energy, DSIRE is managed by the North Carolina Solar Center and the Interstate Renewable Energy Council, Inc.

Renewable Energy Sample Project Documents and Contracts

Renewable energy projects rely on a number of legal contracts. One central contract is the power purchase agreement (PPA), which governs the sale and purchase of power:

  • The seller's primary responsibilities under a PPA developed for an independent power producer (IPP) are to build, operate and maintain a power generation facility in accordance with the requirements of the PPA and applicable law, and to deliver the agreed amount of power.
  • In turn, the buyer is obliged to purchase the energy produced and to pay the agreed tariff.
  • Various elements of the renewable energy PPA depend on the underlying incentive scheme. Typically, one price component in RE PPAs is a fixed price per kWh for electricity delivered for a certain number of years.
  • Risk allocation between the parties may be influenced by the limited ability of the seller to control the output of some RE resources. The lack of output predictability may call for some flexibility with regard to the minimum capacity to be delivered or require the offtaker to pay to some extent for delivered excess electricity.

See also Key Features of Power Purchase Agreements.

Other important contracts include land use agreements, supply agreements, installation agreements, O&M agreements and implementation agreements.

Below are links to sample project documents that were developed for multiple renewable energy sources. For sample documents that relate to specific resources see the sample project documents under Solar Power, Wind Power, Hydropower, Biomass and Geothermal.

Regional

Regional Center for Renewable Energy and Energy Efficiency (RCREEE)

The following are sample contracts published by the Regional Center for Renewable Energy and Energy Efficiency (RCREEE), an independent non-profit regional organization which aims to enable and increase the adoption of renewable energy and energy efficiency practices in the Arab region. RCREEE teams with regional governments and global organizations to initiate and lead clean energy policy dialogues, strategies, technologies and capacity development in order to increase Arab states’ share of tomorrow’s energy.

  • Power Purchase Agreement (PPA) Model for Electricity Generated from Renewable Energy in RCREEE Member States, RCREEE January 2012. PPA to be entered into by a Seller and a Purchaser of energy. The Seller undertakes to construct, own, operate and maintain a renewable energy generating facility, and the Purchaser undertakes to buy the energy output generated by Facility.

  • User’s Guide for The Power Purchase Agreement Model for Electricity Generated from Renewable Energy Facilities, by Adel Beshara, RCREEE March 2012. The User's Guide provides more detailed information on specific provisions in the Power Purchase Agreement Model for Electricity Generated from Renewable Energy in RCREEE Member States (such as term, pre-commercial operation obligations, commercial operation, sale and purchase of energy output, metering, defaults and termination). Additionally, it provides guidance on the development of Renewable Energy Power Purchase Agreements (“REPAs” or “RE-PPAs”).

  • Land Use Agreement (LUA) Model for Renewable Energy Electricity Generating Facilities in RCREE Member States, RCREEE, January 2012. LUA of public owned lands to be used for Renewable Energy (RE) projects. Agreement between the Land Owner (a public entity) and a Land User (a company investing in project development in the field of renewables) for a term of 23 years (divided into three phases: installation, operation and removal of renewable energy improvements).

  • User's Guide for Renewable Energy Electricty Generating Facilities' Land Use Agreement (LUA) Model by Adel Beshara, RCREEE March 2012. This Guide focuses on the long-term land use phase for the installation and operation of a renewable energy project. It discusses topics that are common to any lease and provides additional explanation of some clauses that can have different alternatives commonly used in the industry or proposed by the author (e.g., provisions on fee payments, removal and site restoration). It also covers the phase preceding the long-term land use phase, the option phase, and provides guidance with regard to Option Agreements for Site Evaluation including thoughts on how to avoid land speculation and profiteering as well as information on Easements.

National

Kenya

Model PPAs for wind, biomass, small hydro, geothermal, biogas and solar projects.

Reference: Standardized PPA for Large Scale Generators More than 10MW

Reference: Standardized PPA for Small Scale Generators less than 10MW

Malawi

Reference: Draft Standard PPA of December 2010 published by the Malawi Energy Regulatory Authority for [hydro/geothermal/gas fired] power generation between IPP (“Seller”) and Purchaser, a company entitled to purchase electricity and to transmit and distribute electricity in the Republic of Malawi; Seller proposes to develop, design, finance, insure, construct and complete, own, operate and maintain a [hydro/geothermal/gas fired] power generation facility and Purchaser wishes to purchase from the Seller he capacity of such power generation facility and all of the net electrical output pursuant to the terms and conditions of the PPA.

See also Independent Power Producer (IPP) Framework for Malawi of 8 March, 2017

Serbia

Reference: Model Privileged Producer Electric Power Purchase Agreement pursuant to Article 65 of the Law on Energy Republic of Serbia (applicable for wind, solar, small hydro biomass). The Energy Agency of the Republic of Serbia has published more information on Privileged Power Producers.

Uganda

Reference: Model Implementation Agreement and Standardized PPA published by the Global Energy Transfer Feed in Tariff (GETFiT) Programme. The main objective of the GET FiT Program is to assist East African nations in pursuing a climate resilient low-carbon development path resulting in growth, poverty reduction and climate change mitigation. Through the roll-out of phase one of the program, a portfolio of up to 15 small-scale Renewable Energy generation projects promoted by private developers with a total installed capacity of about 125 MW and approximately 780 GWh production / year will be fast tracked. The GETFiT Programm has also published a License Certificate and License Conditions.

Zambia

Reference: Zambia Renewable Energy Feed-in Tariff (REFIT) Program: REFIT Power Purchase Agreement - Model PPA between state-owned utility and the Seller (draft of February 2016) developed by the United States Agency for International Development (USAID) with the Ministry of Energy and the regulator. The 20-year agreement is applicable for solar, hydro, biomass, geothermal and wind plants and outlines the provisions commonly found in PPAs for private power projects internationally. The PPA is based on the assumption that the developer will finance the project through project finance arrangements. The Seller will also enter into an implementation agreement with the government of Zambia and will obtain a Generation License from the energy regulator in Zambia. The standardized agreement is based on a REFIT policy to stimulate renewable energy production and to promote private sector participation in energy sector. See also Model Grid Connection Agreement, REFIT Guidelines: Support Mechanisms and Draft Regulations and REFIT Rules.

Other relevant contracts relate to the financing, building and operation of the power plant, e.g. land use agreements, construction and operating contracts, as well as implementation agreements. See Related Project Agreements Typically Necessary for a Power Project.

Useful Links

Sample Contracts, Clauses and Bidding Documents

Brazil:

Belo Horizonte - Concessão administrativa para a prestação dos serviços de iluminação pública no Município de Belo Horizonte incluídos o desenvolvimento, modernização, ampliação, eficientização energética, operação e manutenção da Rede Municipal de Iluminação Pública – Concession for the development, modernization, expansion, energy-efficiency, operation and maintenance of the municipal lighting network. See also: Impact Story: SNTA supports street lighting PPPs in Belo Horizonte and Rio de Janeiro, PPIAF April 2016

Canada:

Request for Proposal – LED Streetlight Luminaire Supply of August 2014. Local Authorities Services (LAS) and RealTerm Energy developed a streetlight replacement program which resulted in 150 municipalities jointly procuring LED public lighting on a turnkey basis. This lowered transaction costs, enabled competitive procurement for the small and medium sized municipalities, and transformed the LED market in Canada.

Germany:

Package of tender documents for PPP street lighting projects (Verdingungsunterlagen Beleuchtung) developed by Partnerschaften Deutschland ÖPP Deutschland AG

India:

Odisha, Bhubaneswar Street Lighting Project - Request for Proposal (RFP) Documents for the Selection of Energy Service Company (ESCO) to Implement Street Lighting Project in the City of Bhubaneswar of February 2013. RfP documents contain draft energy performance contract to be entered into by the local authority (Bhubaneswar Municipal Corporation - BMC) and the ESCO (Contractor). The draft contract is based on the shared savings model. The Contractor undertakes to enhance the existing street lighting infrastructure, install cost-effective modern lamp technology, feeder panels for automation and metering, and to operate and maintain the street lighting system covering approximately 20,000 light fixtures. The construction period is 8 months from the effective date of the contract. The contract is for 10 years. Minimum value of guaranteed energy savings is 30%. Payments are based on the energy savings realized. The local authority pays fee from energy savings. ESCO would receive monthly payments out of 90 % of the energy savings realized plus and operation and maintenance fee for each light pole that is taken over by the ESCO under the contract. See also PPP Stories - India: Bhubaneswar – Street Lighting, IFC December 2013.

Mexico:

Guadalajara – Leasing contract (Contrato de Arrendamiento) - Leasing contract of 15 April 2015 between the municipality and a partnership between the installer, Electricidad y Tecnología S.A. de C.V. (Electrotec) and the financial institution, Solucash S.A. de C.V. Sofom E.N.R. (Solucash), regarding the replacement of luminaires and the strengthening of the light network infrastructure in Guadalajara. Private partner is responsible for the installation of the luminaires. Municipality leases retrofitted lights from private partner and makes monthly payments over the 10-year lease term to be financed through cost savings. After expiry of the contract ownership of the luminaires will be transferred to the municipality.

United Kingdom:

Street Lighting Procurement Pack - Model Documentation by the Local Partnerships (upon registration) – Model documentation aims to provide assistance to local authorities in the procurement of street lighting projects through a public private partnership or through the Private Finance Initiative. It is not intended to be a word-for-word template.

Birmingham Highways Maintenance and Management Service PFI - Project Agreement & Schedules -Contract between Birmingham City Council (Authority) and Amey Birmingham Highways Ltd (Service Provider) relating to the rehabilitation, maintenance, management and operation of the roads and street lighting network in the City of Birmingham pursuant to the Government’s Private Finance Initiative (PFI). The contract was signed in May 2010. The street light component is only one part of the 25-year contract and covers the modernization and maintenance of 97,000 street lights and the upgrade of associated street infrastructure.

United States:

Michigan, Detroit Metro Region - Metro Region Freeway Lighting Public-Private Partnership - Delivery of Freeway Lighting as a Design-Build-Finance-Operate-Maintain (DBFOM) Project - Project Agreement with Schedules between the Michigan Department of Transportation (MDOT) and Freeway Lighting Partners, LLC (Project Company) of 24 August 2015. Contract term 15 years. Project Company to design, build and finance the improvements on existing freeway and tunnel lighting systems during a two year construction period and to operate and maintain the existing and improved lighting system for the remaining operating and maintenance period of 13 years. Private partner to hand back the lighting system to MDOT at the end of the contract term. MDOT to make Milestone Payments to the Project Company during the design and construction period and Service Payments to Project Company for performance of services during the operating and maintenance period. The Service Payment takes account of energy savings achieved by the Project Company.

Policies and Legislation

France:

The Code général des collectivités territoriales (French law for regional and local authorities) provides that municipalities have the responsibility for lighting. PPPs (or délégations de service public) are common in this field.

Mexico:

Relevant legislation on street lighting (Normatividad aplicable al alumbrado público) (Spanish)

Toolkits and Reports

PPP in Germany: street-lighting and other sustainability projects, Partnerschaften Deutschland ÖPP Deutschland AG December 2010 explains key elements of the PPP street lighting model.

Lighting Brazilian Cities: Business Models for Energy-Efficient Street Lighting (Modelos de Negócio para Eficiência Energética em Iluminação Pública), World Bank, June 2016 (English and Portuguese) - Based on city studies and surveys in more than 300 municipalities, the report identifies business models and innovative financial structures that match the needs and capabilities of different sized cities. It also provides recommendations to governmental institutions on developing effective new policies and mechanisms to help Brazilian cities take ownership of their public lighting.

Prefeasibility Study Municipal Energy-efficient Public Street Lighting Project in the City of Rio de Janeiro, World Bank Group August 2014 - The objective of this study is to provide city officials in Rio de Janeiro with (a) a brief overview of the global trends in EE public street lighting; (b) a review of the relevant regulatory, institutional and legal frameworks that would have an impact on an investment in energy-efficient public street lighting; and (c) recommendations for financing structures that achieve scale by bundling/aggregation. See also: Impact Story: SNTA supports street lighting PPPs in Belo Horizonte and Rio de Janeiro, PPIAF April 2016

Proyecto Nacional de Eficiencia Energética en Alumbrado Público Municipal (PNEEAPM – National Project for Energy Efficiency and Public Municipal Lighting) This program was established by Mexico’s national government. It aims to provide technical assistance and financing to municipalities intending to implement better and more efficient street lighting systems.

EESL Toolkit for Street Light Energy Efficiency, Energy Efficiency Services Limited (EESL) December 2013. The toolkit is based on analysis of the practical situation in Indian municipalities, and experience gained through the implementation of its ongoing street lighting projects.

Further Reading and Resources

Lighting Brazilian Cities: Business Models for Energy-Efficient Street Lighting (Modelos de Negócio para Eficiência Energética em Iluminação Pública), World Bank, June 2016 (English and Portuguese) - Based on city studies and surveys in more than 300 municipalities, the report identifies business models and innovative financial structures that match the needs and capabilities of different sized cities. It also provides recommendations to governmental institutions on developing effective new policies and mechanisms to help Brazilian cities take ownership of their public lighting.

Proven Delivery Models for LED Public Lighting, ESMAP 2016 - Case studies covering super-ESCO, PPP, ESCO, Lease-to-own, Municipal Financing and Joint Procurement LED Lighting Delivery Models, and a synthesis of the six case studies

Les bonnes pratiques en éclairage public, l’association des maires de France et des présidents d’intercommunalité (AMF) and Syndicat de l’éclairage May 2016

Street Lighting Toolkit – How to assess the impact of an energy efficiency investment in the street lighting asset, Scottish Futures Trust, March 2013 - The toolkit and the two accompanying business cases aim to assist local authorities to assess the impact of investing in energy efficiency measures within their street lighting asset. It draws on best practice and learnings from local authorities who have already implemented successful energy efficient street lighting schemes and provides clear guidelines and a structured approach and process for councils to work through to deliver energy efficient street lighting initiatives.

Republic of India, Energy-Efficient Street Lighting - Implementation and Financing Solutions, World Bank, June 2015 - This reports serves as a manual for the implementation of LED lighting programs based on the experiences from India. Among other things it provides templates for investment grade audits, procurement and contracting, tools and matrices. The manual has been designed according to the requirements and constraints specific to India. However, many of its recommendations may be applicable across urban local bodies (ULBs) and municipalities in other countries.

Energy-efficient street lighting, European PPP Expertise Centre (EPEC) June 2013 (English, Italian, Polish, Romanian) - This fact-sheet summarizes the rationale behind the imperative to improve the energy efficiency of street-lighting, including financial, legislative, technological and environmental drivers. The fact-sheet explores the role of ESCOs in street-lighting and references select examples of successful street-lighting projects, and sources for further reading on the topic.

Policies, Laws and Regulations: Carbon Capture and Storage (CCS)

Reference: Carbon Capture & Storage Database - The International Energy Agency (IEA) International CCS Law and Regulation Database (CCS Database) catalogues how global CCS legal instruments address key regulatory issues associated with CO2 storage. The aim is to support ongoing efforts by governments to implement CCS permitting frameworks – legal or regulatory provisions that enable CCS, aim to ensure safe and effective capture, transportation and storage of CO2, and manage interaction with other uses of the subsurface – by consolidating and making more accessible information on existing instruments.

Reference: Carbon Capture and Storage: Legal and Regulatory Review, International Energy Agency 2015 - The CCS Legal and Regulatory Review gathers contributions by national, regional, state and provincial governments, at all stages of CCS regulatory development. The Review provides an overview of CCS advances since the last edition and those expected to occur in the following 6 to 12 months and an overview of CCS legal and regulatory developments to date is also provided.

Reference: Global CCS (Carbon Capture and Storage) Institute

Legal and Regulatory Indicator (the CCS-LRI), Global CCS (Carbon Capture and Storage) Institute, CCS 2018 – Offers a detailed examination and assessment of national legal and regulatory frameworks in 55 countries and examines a range of legal and regulatory factors likely to be critical for the regulation of the technology.

Further Reading and Resources

Reference: Global CCS Institute - The Global CCS Institute is an international member-led organization whose mission is to accelerate the deployment of carbon capture and storage (CCS) as an imperative technology in tackling climate change and providing energy security.

Reference: International Energy Agency (Topics Page) -The IEA works to ensure reliable, affordable and clean energy for its 29 member countries and beyond. Its mission is guided by four main areas of focus: energy security, economic development, environmental awareness and engagement worldwide.

Reference:Carbon Capture and Storage in Developing Countries: A Perspective on Barriers to Deployment, Natalia Kulichenko and Eleanor Ereira World Bank, June 2012 - This report aims to assist developing countries to better understand issues related to CCS within the economic and legal context of developing countries and countries in transition. It is the first effort of the World Bank Group to contribute to a deeper understanding of (a) the integration of power generation with CCS technologies, as well as their costs; (b) regulatory barriers to the deployment of CCS; and (c) global financing requirements for CCS and applicable project finance structures involving instruments of multilateral development institutions.

Water

Go to Desalination Plant for Victoria, Australia - Project Financed Structure to view full description and find links to resources

PPP Desalination Project - Project deed and ancillary documents with summaries for the design, construction finance and operation of a seawater desalination plant, 85 km transfer pipeline, delivery of power supply for the project, operations and maintenance, and the purchase of renewable energy credits. The state has contracted with the consortium AquaSure to deliver all aspects of the project. AquaSure has engaged other contractors to design, construct, operate and maintain the plant and the associated infrastructure. The capital cost is $3.5 billion fully funded by the private sector. For a portion of the funds the state government was the lender of last resort. The project provides for desalinated water to be delivered from the private sector to the state-owned water authorities, who will in turn deliver this water to households.The seawater desalination plant will supply up to 150 gigalitres (GL) of water with the capacity to upgrade to supply up to 200 GL in the future. A key feature of the project is that all power usage during the operating phase of the project will be fully offset by power generated by renewable energy sources. A project description is available on the site of the Victorian Department of Treasury and Finance.

For more information about public-private partnerships (PPP) in this sector visit PPP Water & Sanitation PPPs.  

Transport

Urban Passenger Rail

Australia

  • Melbourne – Franchise Agreements for Urban Rail - Second generation of agreements. Dated 2009 (amended 2012). Franchise is for an initial period of eight years, renewable for a further maximum of three years. Franchisee to operate railway passenger services on rail infrastructure and using rolling stock leased to it by the Melbourne Public Transportation Authority (PTV), and PTV and the Franchisee have agreed to the payment of Franchise Payments and other payments on the terms of the Agreement.
  • RailCorp Rolling Stock Public Private Partnership - RailCorp entered into a rolling stock public-private partnership (PPP) with Reliance Rail in December 2006. The Reliance Rail consortium comprises equity partners Downer EDI, AMP Capital Investors, Royal Bank of Scotland Group and International Public Partnerships (formerly Babcock and Brown Partnerships). Reliance Rail is supported by a team of industry specialists, including engineering and service organisations such as Downer EDI Rail and Hitachi. See the Updated summary of contracts and Schedule of Agreements.

United Kingdom

United States

  • Denver FasTrack. Eagle Project Concession Agreement - Agreement between the Regional Transportation District (RTD) and Denver Transit Partners (DTP). Summary together with attachments and amendments. The RTD FasTracks Program is a multi-billion dollar comprehensive transit expansion plan to build 122 miles of new commuter rail and light rail, 18 miles of bus rapid transit, 21,000 new parking spaces at light rail and bus stations, and enhance bus service for easy, convenient bus/rail connections across the eight-county district. Eagle P3 is a public-private partnership comprised of RTD's East Rail Line, Gold Line, Commuter Rail Maintenance Facility and Northwest Rail Line Westminster segment. The entire Eagle P3 Project is scheduled for completion in 2016. The Eagle P3 is a $2.2 billion capital project comprised of federal funds, RTD sales tax bonds and private equity from the concessionaire team, Denver Transit Partners. Eagle P3 received a $1.03 billion Full Funding Grant Agreement (FFGA) from the Federal Transit Administration on Aug. 31, 2011. The Eagle P3 Project is being delivered and operated under a concession agreement that RTD has entered into with a "concessionaire" that has been selected through a competitive proposal process “Denver Transit Partners (DTP)”. The concession agreement requires DTP to design-build-finance-operate-maintain (DBFOM) the lines under a single contract. RTD will retain all assets while shifting much of the risk of designing and building the project to DTP.

Metro

Europe

  • Metro Concession Agreement - Concession agreement developed for metro in European city. Drafted by international law firm. Sanitized document together with a summary of the project.

Trams

Australia

  • Melbourne Metropolitan Tram Franchise Agreement - Agreement of 2009 as amended 2014. Franchisee has agreed to operate tramway passenger services on tram infrastructure and using rolling stock leased to it by Melbourne Public Transportation Authority (PTV), and PTV and the Franchisee have agreed to the payment of Franchise Payments and other payments, on the terms of this Agreement. The contract is for a duration of eight years from 2009 and may be extended for a further 3 years on mutual agreement.

Light Rail

Australia

  • GoldLinQ - Gold Coast Rapid Transport Project. GoldLinQ - Gold Coast Rapid Transport Project. GoldLinQ. PPP project for the construction and operation of a 13 km light rail system. The primary contract is the Gold Coast Rapid Transit Project Deed (Project Deed), dated 5 May 2011, between the State of Queensland (the State) and the GoldLinQ Pty Ltd (GoldLinQ “Operator Franchisee”). Under the Project Deed, the Operator Franchisee has agreed to design, construct, manufacture, install and commission the light rail system for the State during a period of approximately three years. This includes the manufacture and supply of the trams and rail systems, track laying, station and structures, and the assembly of the overhead power supply. The operator is paid construction payments against the completion of construction milestones. The following operations and maintenance phase is for 15 years, which includes running tram services to the timetable, cleanliness and maintenance of the trams, and maintenance of the system infrastructure in return for monthly service payments.

Canada

  • Canada Line Rapid Transit Airport Link (TransLink) - The Canada Line project is the construction and operation of a rapid transport link from Richmond City Center to Vancouver Airport in Ottowa, Canada. The Government of Canada, the Province of British Columbia, Greater Vancouver Transportation Authority (TransLink), the Vancouver Airport Authority (VAA) and the City of Vancouver are funding the Canada Line, which is supported by the City of Richmond. The project also involves a private sector partner, InTransitBC, who was selected through a competitive bidding process and there is a link to the concession agreement. The total projected cost of the project was Canadian $1.9 billion (2003). InTransitBC commits to design, build, partially finance, maintain and operate the Canada Line. InTransitBC is to assume most construction and operations risks.

Bus Rapid Transit Systems

A cost-effective alternative to urban rail investments are bus-rapid transit (BRT) systems. A BRT system is a bus-based urban passenger transport system that enables fast, comfortable and high-quality passenger transit. Typical features are the use of dedicated bus lanes and traffic signal priority, technology of intelligent transportation systems (ITS), and rapid and convenient fare collection. In a PPP model the cities build and maintain the infrastructure including stations and a fare collection system, while private operators own and manage the buses, hire staff and provide services on a long-term contract. Existing bus and taxi operators can be integrated into the BRT system and enter into long-term contracts with the relevant municipality.

Colombia

  • Bogotá - TransMilenio - The TransMilenio Bus Rapid Transit (BRT) system opened to the public in December 2000 and replaced a system of many small competing enterprises. It is considered as a model case for a mass urban transit system and was replicated by various cities. The TransMilenio operates like a rail-based system by providing dedicated lanes for the exclusive use of the system’s buses, with boarding stations along the length of the lanes. It is a registered Clean Development Mechanism (CDM) project under the UN Framework Convention on Climate Change (UNFCCC). The sample contracts below relate to Phase I of the TransMilenio system. The concession contract related to Phase II of the project is part of the additional materials provided with the Bus Rapid Transit Planning Guide (2017).
  • Contrato de Concesión (Concession Contract) document in Spanish with annotations in Spanish and English.
  • Contrato de Operación (Operation Contract) document in Spanish with annotations in Spanish and in English

Toolkits

Light Rail

  • Private Sector Participation in Light Rail - Light Metro Transit Initiatives by Cledan Mandri-Perrott (with Iain Menzies), Public-Private Advisory Facility (PPIAF) 2010 – Toolkit on PPP arrangements for the establishment of effective light-rail metro transit (LRMT) systems. Presents options and discusses practical issues related to preparing and implementing new LRMT PPP schemes. The toolkit is intended as a practical guide to developing LRMT PPPs in both developed and developing countries. It aims to help government and public authorities to make informed decisions, adapted to local policy and objectives.

Bus Rapid Transit

  • Urban Bus Toolkit, World Bank and Public-Private Infrastructure Advisory Facility (PPIAF) 2011 - This toolkit is designed to help government officials and policy makers evaluate existing and alternative urban bus systems in developing and transitional countries. It offers practical advice to enact fundamental system reforms (available in English, French and Chinese).
  • Toolkit for Public-Private Partnerships in Urban Transport - Maharashtra, India, Asian Development Bank (ADB) 2011 - This toolkit was prepared to assist public entities in the state of Maharashtra in India in developing public-private partnership (PPP) urban bus transport projects. It includes case studies and detailed term sheets for the different PPP options that aim to facilitate the drafting of contracts. Terms sheets are provided for (a) cost-plus contracts and net-cost contracts (typically lease contracts) where the private sector owns, operates and maintains the buses while the public authority collects the revenue, (b) licensing contracts (typically operation & maintenance contracts) where the buses are owned by the public authority and the private party operates and maintains the buses and collect the revenue, and (c) a bus depot contract (design-build-operate contract) as well as (d) a monorail operation and maintenance contract.
  • Bus Rapid Transit (BRT): Toolkit for Feasibility Studies - This Toolkit is Module 2 of the Guidelines and Toolkits for Urban Transport Development prepared by the Asian Development Bank (ADB) and the Ministry of Urban Development of India in 2008. The documents in this toolkit are designed to help decision makers and practitioners in states and municipal governments who are concerned with urban transport development in medium-sized cities in India.

Fare Collection and Intelligent Transport Systems (ITS)

  • World Bank Toolkit for Intelligent Transport Systems (ITS) for Urban Passenger Transport - Online tool providing guidance in the planning, design, implementation and evaluation of an ITS program. The online resource includes sections on fare collection and case studies as well as a downloadable Handbook and Companion Guide.
  • European ITS Toolkit - Decision-support toolkit for Intelligent Transport Solutions (ITS) - The toolkit was developed by the European project 2DECIDE. It covers ITS solutions for road and public transport in Europe. The toolkit is available to the public for free upon registration. It is available in English, French, Spanish and other European languages.
  • A Toolkit for Self-Service, Barrier-Free Fare Collection, Transport Research Board (TRB) of the United States, Transit Cooperative Research Program (TRCP) Report 80, 2002. The report addresses the full range of issues and parameters - including policy and enforcement issues, operational issues, and capital and equipment issues - that an agency must consider in determining the applicability of self-service fare collection systems. In 2012, TRB released TCRP Synthesis 96: Off-Board Fare Payment Using Proof-of-Payment Verification, as an update to TCRP Report 80.

Further Reading and Resources

Efficient rail transport can be an important catalyst for economic growth and development. Rail transport can stimulate trade, link production sites to regional and international markets, promote the national and cross-border integration of regions and facilitate access to the labor market, education and health services.

Rail transport is generally more energy efficient than road or air transport. Investment in rail transport is therefore an important element of a low carbon transport strategy. High-speed lines can substitute long-distance road or air transport. Rail transport is also an energy efficient means to move high volumes of bulk commodities from the centers of production, such as mining and agricultural areas, to ports and airports.

PPPs in railways can bring opportunities for investment, operating efficiency and modern and clean technology. PPP railway projects providing for shared use of rail tracks may lead to efficiency gains and an increased revenue basis for states and private investors and make investment in PPP schemes more attractive.

See below for documents and links relating to PPPs in the railway sector:

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Updated: November 5, 2020

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