Types of PPP

What is PPP? The term PPP is a literal translation of the English term “public-private relationship”. PPP is a form of cooperation between the government and the private sector in spheres, traditionally referred to the spheres of activity of the government on conditions of the balanced distribution of risks, with aims of designing, financing, constructing, reconstructing, operating and maintaining infrastructure.

The main features of PPP  The cooperation of the parties of partnership should be in the form of contractual relations, and limited in time.  The relationship among parties in the division of risks, responsibilities and benefits should be of partner nature; meanwhile the risks are distributed to the party best capable of handling them.  The parties of partnership should unite their contributions and/or efforts to reach common purposes.  The parties of partnership should be represented by both governmental sector and private sector of economy.  The parties of partnership should cooperate to provide public services; the actions of parties should be oriented towards the final outcome defined by the government.

Public-private partnership InstitutionalInstitutionalContractualContractual The transfer of private sector interests (shares) of legal entities The transfer of private sector interests (shares) of legal entities Governmental (Quasigovernmental) organization Private investor New legal entity Types of contracts: Concession; Contract for cooperation and management; Construction-transfer-lease; Contract for lease; Contract for provision of services; Contract for management and maintenance; Contract for operation and maintenance; Contract for design, construction, financing and operation (concession) Full privatization; Types of contracts: Concession; Contract for cooperation and management; Construction-transfer-lease; Contract for lease; Contract for provision of services; Contract for management and maintenance; Contract for operation and maintenance; Contract for design, construction, financing and operation (concession) Full privatization; Types of PPP

Concession can be used for: Reconstruction and operation of existing objects of infrastructure Construction and operation of new infrastructural objects Concession («construction-transfer- operation») Concession is one the forms of PPP, which allows the private sector involvement to manage and finance the objects of infrastructure, along with the provision of services, which are usually provided by the government on mutually beneficial terms. Форма ГЧП, применяемая в Казахстане

Применение ГЧП Education Construction and maintenance of kindergartens Construction and maintenance of dormitories Technical management of schools Health care Construction and maintenance of medical institutions HCS Water supply and sanitation Recycling MSW (municipal solid wastes) Reconstruction and maintenance of the heat generating capacity and distribution networks Energetics Construction of electricity generating stations (renewable energy); Maintenance of electricity distribution networks Transport Construction and operation of roads Construction (reconstruction) and operation of stations, railway stations, the airport buildings Construction of parkings