Abstract:

The Netherlands has gained experience in recent years with DBFMO contracts in the rail and road sectors. These contracts were concluded between the (local) government and, so-called, special purpose companies. These companies are either privately-owned, publicly-owned or jointly publicly-privately owned. They are responsible for building, operating, maintaining and financing the infrastructure hardware or the associated public services. Their revenues consists either of availability payments from the government or user fees. DBFMO-contracts allow for a, project-specific, allocation of risks. If the special-purpose company carries the demand risks or availability risks, then the project is classified, at least in Europe, as a public-private partnership (PPP).

RebelGroup Advisory has been at the forefront of these developments. It advised both public entities and private business in structuring and financing PPP deals. The presentation shares our knowledge and experiences, and relates them to the implementation of bus rapid transit (BRT) systems. It deals with questions as [1] what constitutes a DBFMO-contract and PPP; [2] what drives successful PPPs; [3] how to assess whether PPP provides value for money versus more traditional public service delivery modes; [4] what is the relevance of PPP for structuring and financing BRT infrastructure hardware; and [5] what are the key challenges in successfully implementing PPP in BRT systems.

Presentation: http://www.cleanairnet.org/baq2006/1757/docs/SW7_1.ppt