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Table 1

Different types of infrastructure PPPs

Type of public-private investmentDefinition
Management and Lease Private operator manages state-owned enterprise for a fixed period of time. Ownership and investment decisions remain with a public partner. 
Management Contract The public partner pays a private operator to manage a facility. 
Lease Contract The public partner leases the assets to the private operator. 
Concessions Private partner manages state-owned enterprise for a fixed period of time and absorbs majority of investment risk. 
Rehabilitate, Operate, Transfer Private sponsor rehabilitates existing facility, and then operates until the end of the contract period. 
Rehabilitate, Lease, Transfer Private sponsor rehabilitates public facility, leases it from the public partner, and operates it until the end of the contract period. 
Build, Rehabilitate, Operate, Transfer Private developer expands an existing facility or rehabilitates existing assets and operates it until the end of the contract period. 
Greenfield Projects Private entity or a public-private venture builds and operates a new facility. At the end of the contract period, whether facility is transferred to the public sector depends on the contract type. 
Build, Lease, Transfer Private sponsor builds a new facility, transfers ownership to a public partner, and then leases the facility from the government. 
Build, Operate, Transfer Private sponsor builds a new facility, then owns and operates the facility throughout the contract period. The facility is transferred to the public partner at the end of the contract period. 
Build, Own, Operate Private sponsor builds a new facility, and then owns and operates the facility. 
Merchant Private sponsor builds a new facility. Government provides no revenue guarantees. 
Rental Government rents mobile power plants from private partners for a short period of time (1–15 years). Private sponsor places the facility at its own risk. Government compensates for risk by providing revenue guarantees. 
Divestitures Private partner buys stock in the state-owned enterprise through asset sale, public offering, or mass privatization program. 
Full Public partner transfers 100% of equity to the private partner. 
Partial Public partner transfers part of the equity to the private partner. Private stake in facility management is determined on a case-by-case basis. 
Type of public-private investmentDefinition
Management and Lease Private operator manages state-owned enterprise for a fixed period of time. Ownership and investment decisions remain with a public partner. 
Management Contract The public partner pays a private operator to manage a facility. 
Lease Contract The public partner leases the assets to the private operator. 
Concessions Private partner manages state-owned enterprise for a fixed period of time and absorbs majority of investment risk. 
Rehabilitate, Operate, Transfer Private sponsor rehabilitates existing facility, and then operates until the end of the contract period. 
Rehabilitate, Lease, Transfer Private sponsor rehabilitates public facility, leases it from the public partner, and operates it until the end of the contract period. 
Build, Rehabilitate, Operate, Transfer Private developer expands an existing facility or rehabilitates existing assets and operates it until the end of the contract period. 
Greenfield Projects Private entity or a public-private venture builds and operates a new facility. At the end of the contract period, whether facility is transferred to the public sector depends on the contract type. 
Build, Lease, Transfer Private sponsor builds a new facility, transfers ownership to a public partner, and then leases the facility from the government. 
Build, Operate, Transfer Private sponsor builds a new facility, then owns and operates the facility throughout the contract period. The facility is transferred to the public partner at the end of the contract period. 
Build, Own, Operate Private sponsor builds a new facility, and then owns and operates the facility. 
Merchant Private sponsor builds a new facility. Government provides no revenue guarantees. 
Rental Government rents mobile power plants from private partners for a short period of time (1–15 years). Private sponsor places the facility at its own risk. Government compensates for risk by providing revenue guarantees. 
Divestitures Private partner buys stock in the state-owned enterprise through asset sale, public offering, or mass privatization program. 
Full Public partner transfers 100% of equity to the private partner. 
Partial Public partner transfers part of the equity to the private partner. Private stake in facility management is determined on a case-by-case basis. 

Source: Nizkorodov (2017: 24).

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