Table 3: Models of private sector participation Type of Description Level of Typical Source of Asset Most common model risk length of capital ownership sectors in assumed contract investment developing by the (years) countries private sector Service Contract for support services Low 1-3 Public Public Water contract utilities Railways Management Management contract for part Low/ 2-5 Public Public Water utilities contract or whole of the operation medium Lease Contract for management of Medium 10-15 Public Public Water sector contract operations and infrastructure PPPs renewal of Contract for investment in and High Varies Private Public/ Energy sector of operation of a specific private Highways component of the Sanitation definition contract infrastructure or service Desalination definition PPPs Concession Contract for financing, High 25-30 Private Public/ Airports/ports/ Broad operations and execution of private rail specific investments Narrow Divestiture/ Contract which transfers Complete Indefinite Private Private Telecoms privatization ownership of public sector infrastructure to the private sector Source: Developed from (H.K.Yong, 2010, Table 3.4, p.20)
Table 3: Models of private sector participation Type of model Description Level of risk assumed by the private sector Typical length of contract (years) Source of capital investment Asset ownership Most common sectors in developing countries Service contract Contract for support services Low 1-3 Public Public Water utilities Railways Broad definition of PPPs Management contract Management contract for part or whole of the operation Low/ medium 2-5 Public Public Water utilities Lease contract Contract for management of operations and infrastructure renewal Medium 10-15 Public Public Water sector Narrow definition of PPPs contract Contract for investment in and operation of a specific component of the infrastructure or service High Varies Private Public/ private Energy sector Highways Sanitation Desalination Concession Contract for financing, operations and execution of specific investments High 25-30 Private Public/ private Airports/ports/ rail Divestiture/ privatization Contract which transfers ownership of public sector infrastructure to the private sector Complete Indefinite Private Private Telecoms Source: Developed from (H.K.Yong, 2010, Table 3.4, p.20)
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