Financing

Financing Description
Finance only a private entity, such as a financial services company, a pension fund or a bank, funds the construction of the public infrastructure directly or through mechanisms such as a long-term lease or a bond issue. The public partner bears all risks and costs of the construction and operation of the facility.
Design-Bid-Build the public partner defines the requirements for the project, ensures its financing and design. The procurement procedure is used to select a private bidder, responsible for the construction. The public partner is the owner of a newly constructed facility and provides its service and maintenance.
Design-Build-Maintain the private partner designs, builds, and maintains the infrastructure in accordance to the specifications and requirements of the public partner. The price is usually pre-agreed and fixed, so the risk and cost of quality assurance and maintenance of the constructed facility is on the private partner. The public entity owns and operates the assets.
Operate-Maintain the public entity signs a contract with the private partner to provide or maintain a service through the public facility. The ownership of the asset remains with the public entity. Sometimes this model is referred to as an outsourcing contract.
Operation Licence the public entity grants a license to the private entity to provide public service, usually with limited duration. This model is frequently used in IT projects.
Design-Build-Operate the private partner designs and builds a public property according to the requirements and specifications of the public partner and at a fixed price. The public entity bears financing and costs. Once the construction is completed, the private partner takes the property in a long-term lease to provide service.
Build-Operate-Transfer the private partner builds and finances the construction of the public facility and uses it to provide service under control of the public entity. The private partner uses the facility under the long-term lease/concession and upon the expiration of the lease, the facility is transferred back to the public partner.
Design-Build-Finance-Operate the private partner designs, builds, and finances a new public facility under a long-term lease. During the lease period, the private partner operates the facility and upon expiration, the facility is transferred to the public partner.
Build-Own-Operate-Transfer the private partner designs, builds, finances, and operates the public facility, while retaining its ownership under the franchise given by the public entity. The private partner charges fees to the public entity and/or end users for the provided services. At the end of the franchise period, the ownership of the facility is transferred back to the public partner without compensation to the private partner.
Lease-Develop-Operate the private partner leases the public facility, develops and improves it technologically and functionally, as well as operates it. The public partner retains ownership of the facility and receives payments according to the lease agreement. This model is usually used in development of airport facilities.
Build-Lease-Operate-Transfer the private partner builds and leases a facility, while its ownership remains with the public partner. The private partner provides services and upon expiration of the agreement, the ownership of the facility is returned to the public partner.
Buy-Own-Operate-Transfer the private partner buys public facility, uses it for a certain period of time and provides the service. Upon expiration of the agreement, the facility is transferred to the public partner without charge.
Design-Build-Finance-Own-Operate-Transfer the private partner designs, develops, builds, and finances the implementation of a public project. The private partner provides the services and uses the facility, which is his property, for a certain period of time. By expiration of that period, the ownership is transferred to the public partner without compensation.
Build-Own-Operate the private partner builds and manages the public property in their ownership without obligation to transfer the assets to the public partner. The public partner regulates and controls services provided by the private partner.
Buy-Build-Operate the private partner buys the public facility under the contract that the assets are to be upgraded and operated for a specified period of time. The private partner also provides services to the public partner and/or end users. By expiration of the term, the private partner retains ownership over the public asset.