2.1.3  Asset / services balance

A PPP entails both the delivery of an asset and some services associated with the asset for a defined period. The balance of total project value between the asset creation and ongoing service delivery components may vary greatly from project to project.  As such, a whole-of-life consideration of the asset and related services is crucial.

In a capital-intensive project, such as a toll road, asset creation is likely to dominate. In projects such as schools, courthouses, prisons and hospitals, the long-term service delivery component may be larger, even with the public sector providing Core Services.