PPP Model

Features

• Contract with the private party to design and build public facility.

• Facility is financed and owned by the public sector.

• Key driver is the transfer of design and construction risk.

Application

• Suited to capital projects with small operating requirement.

• Suited to capital projects where the public sector wishes to retain the operating responsibility.

Strengths

• Transfer of design and construction risk.

• Potential to accelerate project.

Weaknesses

 • Conflict between parties may arise on environmental considerations

• Does not attract private finance easily.

Example

• Kundli Manesar Expressway Ltd.: In this 135 km expressway, land has been provided by the government and surface has been laid out by the company