Principle

Following construction of the facility, the private party must safely, efficiently and continuously operate, maintain and repair the infrastructure. The private party may obtain revenue by offering various products and services to the public (e.g. charging users a toll for the use of the facility.) The private party therefore carries the demand risk on the project. Government, in turn, requires the private party to operate and maintain the facility to prescribed standards and specifications. It must also deliver its products and services to its customers within prescribed parameters.