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PPP -Introduction

A Public Private Partnership (PPP) is an arrangement between the public and private sector for the purpose of delivering infrastructure or services, which were traditionally provided by the public sector.  It is just one of a number of forms of procurement available to the Public Sector. Through a partnership arrangement, the public and private sector can combine to provide quality public services and infrastructure in the most economically efficient manner.

To date Local Authorities have been successful in developing a wide range of PPP projects in areas such as water, wastewater, housing, urban regeneration, waste infrastructure and local government services. The PPP Unit is available to provide information and assistance to Local Authorities who are considering the PPP option. PPP Unit has supported this activity through:

  • preparation of policy framework documents, guidance notes and technical notes; 
  • the standardisation of procedures and contract documentation and
  • the provision of advice and support services for procuring agencies.


There are a number of forms of PPP contracts

Design, Build and Operate (DBO) contracts

Under this form of PPP, the contractor undertakes to design, build, operate and maintain the asset for a period specified in the contract, normally 20-25 years.  The design and build element of the contract is financed by the exchequer, whilst the operations and maintenance element of the contract is the responsibility of the contracting authorities i.e. the local authorities. At the end of the contractual period, the asset reverts to state ownership. Contract under this form of PPP are mainly in the Water Services sector

Design, Build, Operate and Finance (DBOF) contracts

Under this form of contract the contractor undertakes to design, build, finance and operate and maintain the facility for the duration of the contract. The contactor recoups the capital and operational cost through a series of unitary payments made by the contracting authorities over the duration of the contract. At the end of the contract period the asset reverts to state ownership. 

Concession contracts

Concession contracts are similar to design, build, operate and finance arrangements, except that the private sector contractor recovers its costs either through direct user charges i.e. tolls roads or possibly through a combination of user charges and public subventions.

Design, Build and Finance (DBF) contracts


Under this form of contract the contractor agrees to design, build and finance the scheme. This form of contract is widely used in the housing sector, where the contractor recovers his costs through the sale of the private element of the scheme.

 

Joint Ventures

The Joint Venture arrangement differs from other forms of PPP contracts insofar as the public and private sector share in the both the risks and rewards associated with the project. Under this arrangement the public and private partners undertakes roles for which it has particular skill and expertise.  The parties share in the risks and rewards of the enterprise either in accordance with their respective shareholdings or through other contractual arrangements.

 Further Information

For further information contact one of the following members of the PPP Unit:
Thomas Day Ph: 8882742 Email: thomas_day@environ.ie
Aileen Murphy Ph: 8882037  Email: aileen_murphy@environ.ie 

National PPP Website: Information on national PPP policy is available on the Department of Finance's national website: www.ppp.gov.ie

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