Privatization is a term that has been so loosely used that it has many different meanings.
These other approaches have generated a variety of project delivery concepts that are much different than the conventional study, design, competitive construction bid, construct approach. In this approach, the public agency contracts for a private party to design, build, own, and operate a facility for a specified period of time, often 10 to 20 years. At the end of the time period, the ownership is transferred to the public agency under terms that are pre-determined at inception or the subject of later negotiation. BOO build, own, and operate. The public agency contracts for the design, construction, and operation of a facility that will remain in private ownership, and pays a fee for the services provided.