Build-Operate-Transfer
A contractual arrangement whereby the Private Party undertakes the financing and construction of a facility or infrastructure, and the operation and maintenance thereof. The Private Party operates the facility or infrastructure over a fixed term during which it is allowed to collect appropriate tariffs, tolls, fees, rentals, or charges not exceeding those proposed in the Bid or negotiated and incorporated in the Public-Private Partnership Agreement, to enable the Private Party to recover its investment and operating and maintenance expenses for the Public-Private Partnership Project plus a reasonable rate of return thereon. The Private Party transfers the facility or infrastructure to the Entity at the end of the fixed term which shall be specified in the Public-Private Partnership Agreement. This contractual arrangement may be utilised in a supply-and-operate situation, whereby the supplier of equipment and machinery for a facility or infrastructure operates it, providing in the process technology transfer and training of the nominated individuals of the Entity.
Build-Transfer
A contractual arrangement whereby the Private Party undertakes the financing and construction of a facility or infrastructure or and after its completion transfers it to the Entity, which shall pay the Private Party on an agreed schedule (specified in the Public-Private Partnership Agreement) its total investment expended on the Public-Private Partnership Project, plus a reasonable rate of return thereon. This contractual arrangement may be utilised in the construction of any facility or infrastructure which, for any security or strategic reason, must be operated directly by the Entity or the State.
Build-Own-Operate
A contractual arrangement whereby the Private Party is authorized to finance, construct, own, operate and maintain a facility or infrastructure, from which the Private Party is allowed to recover its investment and operating and maintenance expenses by collecting user levies plus a reasonable rate of return thereon. The Private Party owns the facility or infrastructure and may choose to assign their operation and maintenance to a project operator. The transfer of the facility or infrastructure to the Entity is not envisaged in this arrangement. However, the Entity may terminate its obligations after a time period specified in the Public-Private Partnership Agreement.
Build-Lease-Transfer
A contractual arrangement whereby the Private Party undertakes the financing and construction of a facility or infrastructure and upon its completion transfers it to the Entity on a lease arrangement for a fixed period specified in the Public-Private Partnership Agreement, after the expiry of which, ownership of the Public-Private Partnership Project is automatically transferred to the Entity.
Design-Build-Finance-Operate
A contractual arrangement whereby the Private Party designs the facility or infrastructure, builds it on a turn-key basis, assuming cost overruns, delays and specified performance risks, by using its own funds or funds it has raised. Once the facility or infrastructure is commissioned, the facility or infrastructure is owned by the State or Entity and the Private Party is given the right to operate the facility or infrastructure within the period specified in the Public-Private Partnership Agreement, and/or collect user levies under the Public-Private Partnership Agreement. The Private Party transfers the operation of the facility or infrastructure to the State or Entity upon the expiry of the Public-Private Partnership Agreement in accordance with the conditions specified in the Public-Private Partnership Agreement.
Renovate (Rehabilitate)-Operate-Transfer
A contractual arrangement whereby an existing facility or infrastructure is handed over to the Private Party to refurbish, operate and maintain it for a specified period, during which the Private Party collects user levies to recover its investment and operation and maintenance expenses plus a reasonable rate of return thereon. At the expiry of this period, the facility or infrastructure is returned to the Entity.
Operating Concession
A contractual arrangement whereby the Private Party operates a facility or infrastructure and carries out maintenance at its own risk or provides services, and has the right to receive payments from the Entity or the users of such facility, infrastructure or services, such as tariffs, tolls, fees, rentals or charges, for operating such facility or infrastructure or providing such services. The Entity remains the owner of such facility or infrastructure, and is responsible for investment in it.
Lease Contracts
A contractual arrangement whereby a private party is given the right to use State assets or infrastructure for its own commercial purposes in return for an obligation to perform a function, provide a service or provide supplies to the public using that asset or infrastructure, in accordance with policy objectives of an Entity.
Management Contracts
A contractual arrangement whereby the Private Party assumes responsibility for the operation and maintenance of a facility or infrastructure, including day-to-day management of the facility or infrastructure. Payment to the Private Party may be based partially on the services rendered and partially on performance achieved. The facility or infrastructure continues to be owned by the Entity and the Private Party does not have investment responsibility except as may be provided by the Public-Private Partnership Agreement with respect to repairs and maintenance and renewal of equipment. The fixed term of the leasing and management contracts is usually shorter than for other Public-Private Partnership Agreements.
Contract-Add-and-Operate
A contractual arrangement whereby the Private Party expands an existing facility or infrastructure, which it leases from the Entity. The Private Party operates the expanded project and collects user levies, to recover the investment over an agreed period. There may or may not be a transfer arrangement with regard to the added facility or infrastructure provided by the Private Party.