Editing Public–private partnership (section)

== Delivery models ==
{{Further|Project delivery method}}
There are many types and delivery models of PPPs, the following is a non-exhaustive list of some of the designs:

;Operation and maintenance contract (O & M)
:A private economic agent, under a government contract, operates a publicly-owned asset for a specific period of time. Formal, ownership of the asset remains with the public entity. In terms of private-sector risk and involvement, this model is on the lower end of the spectrum for both involvement and risk.<ref name=":2">The Canadian Council for Public-Private Partnerships, "Definitions & Models", https://www.pppcouncil.ca/web/P3_Knowledge_Centre/About_P3s/Definitions_Models.aspx {{Webarchive|url=https://web.archive.org/web/20201028063108/https://www.pppcouncil.ca/web/P3_Knowledge_Centre/About_P3s/Definitions_Models.aspx |date=28 October 2020 }}</ref>

;Build'''–'''finance (BF)
:The private actor builds the asset and finances the cost during the construction period, afterwards the responsibility is handed over to the public entity. In terms of private-sector risk and involvement, this model is again on the lower end of the spectrum for both measures.<ref name=":2" />

;Build'''–'''operate'''–'''transfer (BOT)
:[[Build–operate–transfer]] represents a complete integration of the project delivery: the same contract governs the design, construction, operations, maintenance, and financing of the project.  After some [[Concession (contract)|concessionary]] period, the facility is transferred back to the owner.

;Build–own–operate–transfer (BOOT)
:A BOOT structure differs from BOT in that the private entity owns the works. During the concession period, the private company owns and operates the facility with the prime goal to recover the costs of investment and maintenance while trying to achieve a higher margin on the project. BOOT has been used in projects like highways, roads mass transit, railway transport and power generation.<ref>{{cite book|last=Gatti|first=Stafano|title=Project Finance in theory and practice|publisher=Academic Press|year=2007|isbn=978-0-12-373699-4|pages=414}}</ref>

;Build–own–operate (BOO)
:In a BOO project ownership of the project remains usually with the project company, such as a [[mobile phone network]]. Therefore, the private company gets the benefits of any [[residual value]] of the project. This framework is used when the physical life of the project coincides with the concession period. A BOO scheme involves large amounts of finance and long [[payback period]]. Some examples of BOO projects come from the water treatment plants.<ref>{{cite book|last=Lewis/ Grimsey|first=Mervyn/Darrin|title=Public Private Partnerships: the worldwide revolution in infrastructure provision and project finance|publisher=Edward Elgar Publishing|year=2007|isbn=978-1-84720-226-0|pages=268}}</ref>

;Build–lease–transfer (BLT)
:Under BLT, a private entity builds a complete project and leases it to the government. In this way the control over the project is transferred from the [[project owner]] to a lessee. In other words, the ownership remains by the [[shareholders]] but operation purposes are leased. After the expiry of the [[leasing]] the ownership of the asset and the operational responsibility is transferred to the government at a previously agreed price.

;Design'''–'''build'''–'''finance'''–'''maintain (DBFM)
:"The private sector designs, builds and finances an asset and provides hard facility management or maintenance services under a long-term agreement." The owner (usually the public sector) operates the facility. This model is in the middle of the spectrum for private sector risk and involvement.<ref name=":2" />

;Design–build–finance–maintain'''–'''operate (DBFMO)
:Design–build–finance–operate is a project delivery method very similar to BOOT except that there is no actual ownership transfer. Moreover, the contractor assumes the risk of financing until the end of the contract period. The owner then assumes the responsibility for maintenance and operation. This model is extensively used in specific infrastructure projects such as [[toll roads]]. The private construction company is responsible for the design and construction of a piece of infrastructure for the government, which is the true owner. Moreover, the private entity has the responsibility to raise finance during the construction and the exploitation period.<ref>{{cite book|last=Pekka|first=Pakkala|title=Innovative Project Delivery Methods for Infrastructure|publisher=Finnish Road Enterprise|year=2002|isbn=978-952-5408-05-8|pages=120|url=http://www-esd.worldbank.org/pbc_resource_guide/Docs-latest%20edition/cases-and-pdfs/pakkalae5.pdf}}</ref> Usually, the public sector begins payments to the private sector for use of the asset post-construction. This is the most commonly used model in the [[EU]] according to the European Court of Auditors.<ref>The European Court of Auditors (2018), "[https://www.eca.europa.eu/Lists/ECADocuments/SR18_09/SR_PPP_EN.pdf Special Report: Public-Private Partnerships in the EU: Widespread shortcomings and limited benefits]".</ref>

;Design–build–operate–transfer (DBOT)
:This funding option is common when the client has no knowledge of what the project entails. Hence they contracts the project to a company to design, build, operate, and then transfer it. Examples of such projects are refinery constructions.<ref>{{cite web|title=Worli-Haji Ali sea link will be ready in 4 years|url=http://www.dnaindia.com/mumbai/report_worli-haji-ali-sea-link-will-be-ready-in-4-years_1402669|work=DNA|publisher=Diligent Media Corporation |date=Jun 29, 2010 |first1=Ninad |last1=Siddhaye |url-status=live |archive-url=https://web.archive.org/web/20121001002047/http://www.dnaindia.com/mumbai/report_worli-haji-ali-sea-link-will-be-ready-in-4-years_1402669 |archive-date= Oct 1, 2012 }}</ref>

;Design–construct–manage–finance (DCMF)
:A private entity is entrusted to design, construct, manage, and finance a facility, based on the specifications of the government. Project cash flows result from the government's payment for the rent of the facility. Some examples of the DCMF model are prisons or public hospitals.

;Concession
:A [[concession (contract)|concession]] is a grant of rights, land or property by a government, local authority, corporation, individual or other legal entity.<ref>[http://www.wisegeek.com/what-is-a-concession-agreement.htm#did-you-know What is a concession agreement?], wisegeek.com</ref> [[Public services]] such as [[water supply]] may be operated as a concession. In the case of a public service concession, a private company enters into an agreement with the government to have the exclusive right to operate, maintain and carry out [[investment]] in a public utility (such as a [[water privatization]]) for a given number of years.<ref name=":2" />

{| class="wikitable"
|+Different Levels of Private sector engagement in PPP contracts
! style="width:650px;" | Model
! class="unsortable" style="width:200px;" |Identify Infrastructure Need
! class="unsortable" style="width:200px;" |Propose solution
! class="unsortable" style="width:200px;" |Project design
! class="unsortable" style="width:200px;" |Project financing
! class="unsortable" style="width:200px;" |Construction
! class="unsortable" style="width:200px;" |Operation
! class="unsortable" style="width:200px;" |Maintenance
! class="unsortable" style="width:200px;" |Ownership
! class="unsortable" style="width:200px;" |Concession?
|-
|'''Bid–build'''
| colspan="4"  style="text-align:center; background:#b6e1fc;"  |Public sector
| style="text-align:center; background:#b0ceff;"  |Private sector
| colspan="3"  style="text-align:center; background:#b6e1fc;"  |Public sector
| style="text-align:center; background:#ffb6b6;"  |No
|-
|'''[[Design–bid–build]]'''
| colspan="2"  style="text-align:center; background:#b6e1fc;"  |Public sector
| style="text-align:center; background:#b0ceff;"  |Private sector
| style="text-align:center; background:#b6e1fc;"  |Public sector
| style="text-align:center; background:#b0ceff;"  |Private sector
| colspan="3"  style="text-align:center; background:#b6e1fc;"  |Public sector
| style="text-align:center; background:#ffb6b6;"  |No
|-
|'''[[Design–build]]'''
| colspan="2"  style="text-align:center; background:#b6e1fc;"  |Public sector
| style="text-align:center; background:#b0ceff;"  |Private sector
| style="text-align:center; background:#b6e1fc;"  |Public sector
| style="text-align:center; background:#b0ceff;"  |Private sector
| colspan="3"  style="text-align:center; background:#b6e1fc;"  |Public sector
| style="text-align:center; background:#ffb6b6;"  |No
|-
|'''Design–build–finance'''
| colspan="2"  style="text-align:center; background:#b6e1fc;"  |Public sector
| colspan="3"  style="text-align:center; background:#b0ceff;"  |Private sector
| colspan="3" style="text-align:center; background:#b6e1fc;"  |Public sector
| style="text-align:center; background:#ffb6b6;"  |No
|-
|'''Design–build–finance–maintain'''
| colspan="2" style="text-align:center; background:#b6e1fc;"  |Public sector
| colspan="3" style="text-align:center; background:#b0ceff;"  |Private sector
| style="text-align:center; background:#b6e1fc;"  |Public sector
| style="text-align:center; background:#b0ceff;"  |Private sector
| style="text-align:center; background:#b6e1fc;"  |Public sector
| style="text-align:center; background:#ffb6b6;"  |No
|-
|[[Design build finance and operate|'''Design–build–finance–operate''']]
| colspan="2" style="text-align:center; background:#b6e1fc;"  |Public sector
| colspan="4" style="text-align:center; background:#b0ceff;"  |Private sector
| colspan="2" style="text-align:center; background:#b6e1fc;"  |Public sector
| style="text-align:center; background:#ffb6b6;"  |No
|-
|'''Design–build–finance–maintain–operate'''
| colspan="2"  style="text-align:center; background:#b6e1fc;"  |Public sector
| colspan="5"  style="text-align:center; background:#b0ceff;"  |Private sector
| style="text-align:center; background:#b6e1fc;"  |Public sector
| style="text-align:center; background:#ffb6b6;"  |No
|-
|'''Build–finance'''
| colspan="3"  style="text-align:center; background:#b6e1fc;"  |Public sector
| colspan="2"  style="text-align:center; background:#b0ceff;"  |Private sector
| colspan="3"  style="text-align:center; background:#b6e1fc;"  |Public sector
| style="text-align:center; background:#ffb6b6;"  |No
|-
|'''Operation & maintenance contract'''
| colspan="5"  style="text-align:center; background:#EEEEEE;"  |?
| colspan="2"  style="text-align:center; background:#b0ceff;"  |Private sector
| style="text-align:center; background:#b6e1fc;"  |Public sector
| style="text-align:center; background:#ffb6b6;"  |No
|-
|'''[[Build-operate-transfer]]'''
| colspan="2"  style="text-align:center; background:#b6e1fc;"  |Public sector
| colspan="5"  style="text-align:center; background:#b0ceff;"  |Private sector
| style="text-align:center; background:#b6e1fc;"  |Public sector
| style="text-align:center; background:#fad7b7;"  |Temporary
|-
|'''Build–lease–transfer'''
| colspan="2"  style="text-align:center; background:#b6e1fc;"  |Public sector
| colspan="3"  style="text-align:center; background:#b0ceff;"  |Private sector
| style="text-align:center; background:#b6e1fc;"  |Public sector
| colspan="2"  style="text-align:center; background:#b0ceff;"  |Private sector
| style="text-align:center; background:#fad7b7;"  |Temporary
|-
|'''Build–own–operate–transfer'''
| colspan="2"  style="text-align:center; background:#b6e1fc;"  |Public sector
| colspan="6"  style="text-align:center; background:#b0ceff;"  |Private sector
| style="text-align:center; background:#fad7b7;"  |Temporary
|-
|'''Build–own–operate'''
| colspan="2" style="text-align:center; background:#b6e1fc;"  |Public sector
| colspan="6" style="text-align:center; background:#b0ceff;"  |Private sector
| style="text-align:center; background:#ffff99;"  |Yes
|-
|'''Market-led proposals'''
| colspan="7"  style="text-align:center; background:#b0ceff;"  |Private sector
| style="text-align:center; background:#b6e1fc;"  |Public sector
| style="text-align:center; background:#ffb6b6;"  |No
|}