Previous sections have introduced the main variations and types of PPPs. The most relevant classification has been explained extensively, that is, user-pays versus government-pays PPPs. This and other variations and types of PPPs that consider other factors (ownership, scope, and so on) are shown below in an organized manner, presenting the PPP types depending on specific factors.

This section provides information regarding the following:

• Variations or types of PPPs; and
• Nomenclature issues – explaining the various names that are used for contracts that may be regarded as PPPs.

Privatized Companies and Companies operating in a liberalized and regulated market — “Regulated Investor owned utilities”.

There is often confusion between privatization and PPPs (especially with user-pays PPPs). But there is a clear difference between these two forms of private sector engagement. See table 1.1.

Contracts for the procurement of services or management of existing infrastructure can be divided into two categories.

Design, Build, Operate and Maintain (DBOM)

There are some contracts which are financed by the government against the budget (such as a conventional procurement) but in which the selected contractor will carry out the construction works, future operations, and maintenance.

Traditional procurement of infrastructure: public finance and public management. Build and Design, and Build contracts.

Public works and public infrastructure are traditionally financed by the government. The source of funds for such traditional procurement is the public budget[11].

Important note: “Infrastructure” is used in this PPP Certification Guide in the broad sense. This includes not only complete systems or facilities with significant civil works, but also equipment (for example, rolling stock for rail) and plants (independent power producers, wastewater treatment plants, and so on) where the civil works may be less relevant.

This PPP Guide focuses on PPPs as a method for procuring infrastructure development and management on the basis of private finance, as introduced in box 1.3. The definition of a private finance PPP provided in this PPP Guide implies a number of features which need to be present in a PPP contract to be properly regarded as a private finance PPP. This section will describe and explain each of these features.

PPPs are a contractual means to deliver public assets and public services. PPP contracts include those intended to develop and manage new infrastructure, contracts to undertake significant upgrades to existing infrastructure (these are called infrastructure PPPs), and those under which a private partner manages existing infrastructure or only provides or operates public services (known as service PPPs).

PPP is regarded as a method for procuring and delivering both public assets^[1] (new assets or upgrades of existing assets) and public services.