(Hodge! &! Greve,! 2007).! ! PPPs! are! also! unique! because! they! extend! beyond! the!…

(Hodge! &! Greve,! 2007).! ! PPPs! are! also! unique! because! they! extend! beyond! the! design/bid/build!phase!to!include!operation!and!maintenance!over!the!longFterm. In! their! paper! “Dispelling! the! Myths:! A! PanFCanadian! Assessment! of! Public! Private! Partnerships! for! Infrastructure! Investments”,! the! Conference! Board! of! Canada! illustrates! the! well! the! primary! difference! between! a! conventional! project! and! PPP project!by!offering!the!following!key!features!of!each: Figure)II:)Key)Features)of)PPP)and)Conventional)Procurement)Methods Key!Features!of!PPP!and!Conventional!Procurement!Methods PPP!Projects Conventional!Projects Private! sector! stewardship,! whereby overall! control! of! project! execution! is! transferred! to! the! private! sector! partner.! The! completion! of! milestones! is! determined! by! an! independent! certifier! and! overseen! by! the! private! sector! partner.! The! public! sector! owner! must! step! back! and! allow! the! PPP! consortium! and!its!contractors!the!freedom!to!manage! each! phase! of! the! project! in! a! way! that! best! meets! the! contractual! obligations.! However,! the! public! sector! owner! ultimately! retains! ownership! of! the! asset,! including!the!right!to!make!changes!to!the! requirements!or!even!to!terminate!the!PPP arrangement. Project!stewardship!by!the!public!sector!or! a! contract! management! firm.! Overall! control! of! the! project! execution! rest! with! the! public! sector! owner! (or! a! contract! management! firm! acting! on! behalf! of!the! public! sector! owner).! The! public! sector! owner! (or! its! contract! management! firm)! would! typically! have! engineers! on! site! to! supervise! and! direct! the! project! and! to! inspect! and! approve! the! work! at! key! completion!milestones.! Source:&The&Conference&Board&of&Canada,&2010 34 According!the!Conference!Board!of!Canada!model,!the!key!distinguishing!feature! between! a! PPP! project! and! a! conventional! project! procurement! and! execution! methodology!is! the! role! that! the!private!and!public! sectors!play!in! stewardship!of! the! project.!In! the!PPP!project,!it!is! the!private!sector! that! takes!on!ultimate!responsibility for! the!successful! execution! of! the! project! and! therefore! assumes! most! of! the! risks! associated! with! the! project.! Conversely,! in! a! traditional! procurement! methodology,! although! the! public! sector! may! procure! additional! resources! to! support! the! project! execution,!the!public!sector!retains!stewardship!and!therefore!ultimately!accountability! and!responsibility!for!execution!of!the!infrastructure!project,!and!as!such!limited!risk!is! transferred!to!the!private!sector!in!this!model.! Types)of)Public)Private)Partnerships Depending!on!the!nature!of!the!project,!the!role!of!the!private!sector!will!vary.!A! number! of! different! types! of! PPP! project! exists! across! a! spectrum! of! privatization! as! depicted!in!the!Figure!2!below.!On!the!leftFhand!side!we!see!examples!of!conventional! public! sector! projects.! As! we! move! to! the! right! side! of! the! spectrum! the! role! of! the! private! sector!increases!in! terms!of! stewardship,!accountability,! responsibility!and! risk! ownership.!For!example,!in!a!operations!and!maintenance!PPP!project!the!public!sector! would!procure!a!private!sector!contract!to!provide!operations!and!maintenance!services! for! infrastructure! but! would! maintain! responsibility! for! the! design,! build,! financing! of! the!capital!asset.!Conversely,!in!a!designFbuildFfinanceFmaintainFoperate!or!DBFMO!PPP project!type,!the!public!sector!would!contract!with!a!consortium!of!vendors!who!would! together!provide!the!design!and!build!services!for!the!project,!would!raise!the!required!

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(Hodge! &! Greve,! 2007).! ! PPPs! are! also! unique! because! they! extend! beyond! the!…
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