It is Government’s intention to encourage innovation in as many areas as possible. Traditionally, PPPs have been applied to infrastructure and service provision – in particular in the electricity, telecommunications, water, transport and solid waste sectors and increasingly in the social (health and education) and Information Technology sectors. A wide spectrum of PPP arrangements exists, differing in purpose, service scope, legal structure and risk sharing. One end of the spectrum would be outsourcing of some routine operation, while the other could involve the private sector conceiving, designing, building, operating, maintaining and financing a project, thereby taking a considerable proportion of risk. Additionally PPPs can take the form of partial or complete divestiture/privatisation. The choice of the PPP arrangement for a particular project will depend on Government’s policy in the related sector and on potential value for money to be generated under such an arrangement. Some of the examples of PPPs are listed below.

Service contract
Under this option, the private sector performs a specific operational service for a fee.
For example in the utility based industries such as electricity, water and telecommunication for such activities as meter reading, billing and revenue collection usually for a period of one year.

Management contract
Under management contract, the private sector is paid a fee for operating and maintaining a Government owned business and is totally responsible for day to day management of the business in line with set targets agreed by both parties usually for a period of two to three years.

Lease
Under a Lease arrangement, the private sector is responsible for operations and maintenance and the Government or public sector still retains ownership of the asset usually for a period of 3 to 5 years.

Concession
This is where the private sector finances a project and is responsible for operations and maintenance. The Government retains the ownership of the asset and all full use rights revert to Government after the agreed period of the concession. The private sector is expected to provide long term investment capital over the period of the concession usually 20 to 30 years, in return for fees from service users.

Build Operate Transfer (BOT)/Build Own Operate Transfer (BOOT)
The private party agrees to perform construction work and operate a service. Key obligations for the private party include:
• Building the infrastructure;
• Maintaining the infrastructure;
• Providing service; and
• Transferring control of the project facilities to the public authority upon expiry of the contract period.

BOT or BOOT are similar to concessions except they are applicable to Greenfield projects. Like concessions, the private sector receives fees from service users. The private sector builds, operates and transfers the asset to Government after the expiry of the concession period, usually 20 to 30 years.

Divestiture – (Privatisation)
This option can take two forms – partial or complete divesture. A complete divesture, like a concession, gives the private sector full responsibility for operations, maintenance and investment. Unlike a concession, divesture transfers ownership of the assets to the private sector.