Which PPP models exist?

According to the EPEC PPP Guide, we can divide the PPP projects into five different models:

1) Public DBO (= design, build, operate)

A public DBO model involves the Managing Authority operating without any private sector intervention, except at a service provider level (involving either wholesale or retail service providers). All aspects of network deployment and operation are managed by the public sector. A network company is formed by the Managing Authority and typically offers wholesale services, with the potential to offer retail services (although this is not common).

2) Private DBO

The private design, build and operate model involves a private sector organisation receiving some level of public funding (often a grant) to assist in its deployment of a new network offering open wholesale access. Critically, in this model the public sector has no specific role in the ownership or running of the network, but it may impose obligations relating to either of these in return for the funding.

3) GOCO (Government Owned, Contractor Operated)

Government-owned-contractor-operated (Public outsourcing). Under a public outsourcing model a single contract is awarded to a private sector organisation, covering all aspects of the design or construction of the network. The key characteristic of this model is that the network is built and operated by the private sector, but the public sector retains ownership and some control of the network.

4) Joint-Venture

A joint venture is any agreement where ownership of the network is split between the public and private sector. Construction and operational functions are likely to be undertaken by a private sector organisation.

5) Bottom-up

The bottom-up, or local community, model involves a group of end users (comprising local residents and/or businesses) organising themselves into a jointly owned and democratically controlled organisational group (frequently a co-operative) capable of overseeing the contract to build their own local network. In this model it is likely that the public sector has no role in owning or running the project, but rather passes the funding to the group itself to oversee the investment project. Given the composition of the local group it is likely that the day-to-day running of the network will be outsourced to a telecoms operator with the necessary expertise. Bottom-up funded projects tend to be of a smaller scale than projects that use the other funding models.

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