Under a BOO contract the investor is committing to cost recovery through connection fees and the water tariff. Investors will only take this risk under the right kind of market conditions and incentives, possibly including different types of direct subsidies to attract initial interest in smaller towns. Oversight by the Local Government Unit, contracting a Private Operator under a construction contract and a 15 year lease agreement Full cost recovery on Development Bank of the Philippines' sub-loans to Local Government Units. Technical support provided by regional Association of WUAs. WUA contracts a Private Operator under a 10 year lease agreement.
Construction is carried out by the operator under a government contract.
Full cost recovery. Operators finance construction and recover their costs through a connection fee and the tariff.