This report discusses key criteria, derived through an examination of four case studies, which should be used to determine whether a PPP is the appropriate procurement vehicle for a given project. Policy makers need to ask the following questions:
- Is the PPP project conceived to provide a measurable, direct public benefit?
- Will private-sector efficiencies in design, management, construction, and other
domains offset higher costs associated with private-sector financing and risk transfer?
- Are project requirements amenable to a diverse array of solutions?
- Can a PPP also facilitate other objectives, such as modernizing while streamlining
This report also provides practical perspectives on establishing a PPP. PPPs can be conceptualized along a continuum that ranges from traditional Design-Bid-Build agreements in which the public sector retains the risk and responsibility to full concession agreements in which risk and responsibility is transferred to the private-sector. The continuum includes consideration of the delivery model, risk allocation, contract
structure, payment mechanism, and financial structure.”