3.1.2  PPP Models

PPPs can be delivered through various delivery models where the provider takes on responsibility for non-construction functions in addition to the construction role. In each model, the provider undertakes a different combination of roles, for example;

•  Design Build Finance Operate (DBFO); and

•  Design Build Finance Maintain (DBFM).

The following figure 3 illustrates one type of PPP. The government engages a private sector entity responsible for construction, financing, operations and maintenance. The government has certain "step-in" rights in the event of default by the private party.

The government's responsibilities for managing the project are therefore different from all the other delivery models. The government becomes a purchaser of asset-based services that are paid for according to performance. The government allocates certain risks to the private party, locks in whole-of-life budgets and quality standards and focuses on its core business.

Figure 3: Example of PPP Structure