Various forms of PPPs have been utilized in providing traditional government services and are being explored for e-Government. A PPP contrasts with traditional public investment, where the government contracts with the private sector to build an asset, but the design and financing are provided by the government and the government owns and operates the resulting facility. The PPP concept reflects a belief that giving the private sector responsibility for designing, building, financing, and/or operating an asset may lead to increased efficiency in the delivery of services. The following are some of the many types of PPPs identified by the
National Council for Public-Private Partnerships (US):
- Design-Build-Finance-Operate (DBFO): In this PPP, the government specifies the services that it wants the private sector to deliver and the private partner designs and builds a dedicated asset for that purpose, finances its construction, and operates the asset, providing the public services required.
- Build-Own-Operate (BOO): The private partner builds and operates a facility/service without transferring ownership to the public sector. Throughout the process, the private sector partner owns the facility.
- Build-Operate-Transfer (BOT): The private partner builds a facility to the specifications agreed to with the public agency and operates (but never owns) the facility for a specified time period under a contract or franchise agreement with the agency. At the end of the franchise period, the public partner, which always retains ownership, can assume operating responsibility for the facility, contract the operations to the original franchise holder, or award a new operating contract or franchise to a new private partner.
- Build-Own-Operate and Transfer (BOOT): The private partner owns the project, invests resources, undertakes its development, owns and operates it for some time, and then transfers the assets to a public agency.
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