Concession-Based Models (User-Pays)
PPP contracts are structured based on the mechanism through which the private partner recovers their investment and generates a return:
  • Build-Operate-Transfer (BOT): The private partner finances and builds the infrastructure, operates it for a fixed concession period (e.g., 25–30 years) to recover costs via user fees, and then transfers ownership back to the state at zero cost.
  • Build-Own-Operate-Transfer (BOOT): Similar to BOT, but the private partner retains explicit legal ownership of the asset during the concession period.

Availability-Based Models (Government-Pays)
  • Design-Build-Finance-Operate (DBFO): The private partner designs, builds, and maintains the asset. The government retains ownership and makes regular, performance-linked Availability Payments to the private partner, provided the asset is maintained to pre-agreed standards (e.g., a public school or hospital).

Comparative Structure Matrix
[ User-Pays (Concessions) ] ------> Demand risk sits with the private partner (e.g., Toll Roads)
[ Government-Pays (DBFO) ] -------> Demand risk sits with the state; private partner faces performance risk
[ Joint/Hybrid Models ] ----------> Government provides a baseline subsidy plus partial
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