The different types of PPP contracts are listed below-
Build Operate and Operate (BOO) – The private entity designs, invests, constructs, manages, maintains and owns the project. The salient feature of this model is that the ownership and the service facility responsibility rest with the private entity. Later on the government entity partner purchases the goods and services produced by the project.
Build-Own-Operate-Transfer (BOOT) - The private entity partner undertakes to complete a complex infrastructure development project, for which the private entity is granted concession. The government entity provides limited funding or other benefits such as tax benefits.
Build Own and Transfer (BOT) – It is the most common form of concession agreement in India. The private entity is responsible for the financing, construction, operation and maintenance of the project for the fixed period of contractual agreement. During the operation period the private entity recovers its construction expenses/operation and maintenance charges by charging fees, collecting toll or rentals. Thereafter, a fully operational facility is transferred to the government at no cost.
Build Transfer Operate (BTO) – Under this model the private entity builds the project and subsequently, the title is transferred to the government entity. However, the private entity is given the right under an agreement to operate the project for a certain period of time after transferring the built infrastructure project to the government entity.
Design-Construct-Manage-Finance (DCMF) – Under this model the private entity partner creates, designs, finances, constructs and manages the project in accordance with the government entity specifications and leases it back to the government entity. The private entity recovers its expenses by receiving rent from the government entity in the form of periodical payment or direct payment.
Design-Build-Finance-Operate-Transfer (DBFOT) - In this model, the private entity designs, constructs, finances, manages and operates the project for a specific time period and transfers the ownership of the project to the government entity after the specific time frame.
Engineering, Procurement and Construction (EPC) – This model is used for the development of infrastructure projects especially highways. The procurement of raw material, construction costs and other finances are wholly met by the government entity. The private entity participation is limited to providing engineering expertise only.
Hybrid Annuity Model (HAM) – This is another model which is commonly used for implementing Highway projects. The government and private entity share the cost of the project in the ratio of 40:60, respectively. It is a mix of BOT and EPC model. The government entity collects the toll and pays the fixed amount of annuity to the private partner entity for a fixed period as per the contract agreement.