2.4.2. How a PPP project is different from a conventional project?

There are significant differences between a conventional construction procurement project and a PPP project that need to be clearly understood. The main differences include:

♤ PPP projects are different from conventional construction projects in terms of project development, implementation, and management. The administrative and approval processes in the case of PPP projects are also different.

♤ A PPP project is viable essentially when a robust business model can be developed.

♤ The risk allocation between the partners is at the heart of any PPP contract design and is more complex than that of a conventional construction project. Both partners should

clearly understand the various risks involved and agree to an allocation of risks between them.

♤ A PPP contract generally has a much longer tenure than a construction contract. Managing the relationship between the private company and the implementing agency over the contract tenure is vital for the success of a PPP project.