Medium to long-term agreement
Involves more than simple construction and/procurement of assets
Private partner provides or contributes to the provision of the public asset and/or service
There are clear service benchmarks to anchor performance assurance
New infrastructure – ownership revert to KWSG at the end of the contract term
Private partner revenue stream depends on the availability and quality of service
Revenue stream may be from, KWSG, User charges/tariffs, Combination of the above
Private partner takes on part or all of financial, demand and operational risks at least
Existing infrastructure – private partner may be required to invest in upgrades; ownership revert to KWSG at the end of the contract term
A project may not be a PPP if most of these characteristics are not immediately evident. For these projects, the additional benefits of this procurement style, for both private sector and government, will therefore not be harnessed.
KWSG is a financial partner AND continues to bear operational and financial risks, which are more appropriately borne by the private party
It is expected that the KWSG would take up ownership of this asset only after having paid the private partner.
Ownership of the infrastructure asset, existing or new, is transferred to the private sector after the agreement term.
Private partner requires KWSG intervention in a manner alluding working capital, labour+r, land assistance, etc.