Public Private Partnerships

Public Private Partnerships

The Worldwide Revolution in Infrastructure Provision and Project Finance

Darrin Grimsey and Mervyn K. Lewis

This path-breaking book considers the recent trend for governments to look increasingly to private sector finance, provided by private enterprises constructing and managing public infrastructure facilities in partnership with government bodies.

Glossary

Darrin Grimsey and Mervyn K. Lewis

Subjects: economics and finance, financial economics and regulation, public finance, public sector economics

Extract

Accountability. The ability of the public (state and citizens) to hold to account those exercising public authority over standards and the use of public funds in delivery of services. Annual debt service cover ratio (ADSCR). This measures the pre-finance posttax cashflow for the previous year in relation to the amount of loan interest and principal payable for that period. Bidder. A respondent to a request for Expressions of Interest or an invitation to submit a bid in response to a Project Brief. Typically, a bidder will be a consortium of parties with one lead party responsible for the provision of all contracted services on behalf of the consortium. Build, own, operate (BOO). The developer is responsible for design, funding, construction, operation and maintenance of the facility during the concession period, with no provision for transfer of ownership to the government. At the end of the concession period, the original agreement may be renegotiated, a new agreement may be negotiated, or the facility may be purchased by the government. Build, own, operate, transfer (BOOT). An arrangement whereby a facility is designed, financed, operated and maintained by a concession company. Ownership rests with the concessionaire until the end of the concession period, at which point ownership and operating rights are transferred to the government (normally without charge). Build, operate, transfer (BOT). An agreement where a facility is designed, financed, operated and maintained by the concessionaire for the period of the concession. Legal ownership of the facility may or may not rest with...