Public-Private Partnerships

Infrastructure Projects

From Planning to Operation

Public-Private Partnership (PPP) is a form of collaboration between the public sector (municipality, state) and the private sector (private companies or organizations) in the implementation of infrastructure projects, in our case. The purpose of PPP is to combine the advantages and resources of both sectors to achieve better efficiency, quality, or innovations in project implementation. Within PPP, the public and private sectors often share responsibility for financing, construction, management, and maintenance of the project. Our practice involves concession relationships of the DBOT type. This is a model of public-private partnership used for the implementation and financing of infrastructure projects. The acronym DBOT stands for "Design-Build-Operate-Transfer." According to this model, a private company takes responsibility for the entire life cycle of the project, including financial planning, construction, operation, and maintenance, before transferring it back to public ownership.

After 15 years of professional management and maintenance, with controlled monthly and annual reporting, the client receives a well-established and impeccably maintained facility, which will continue to serve its purpose for a long time.
In this type of concession relationship, the building is owned by the private entity for the first 15 years, during which it is also required to manage and maintain it. Due to the extended period, it is in the private entity's interest to ensure that both the construction and installed equipment are of high quality and energy-efficient.

Concession Agreement

Synergy that Benefits All Parties

A concession agreement refers to a form of public-private partnership in which a public entity (e.g., government or local administration) grants a concession to a private company for the provision of specific services or management of certain infrastructure. The concession relationship typically involves the assignment of special rights and obligations to the private partner for a specified period, in exchange for which the partner provides services, receives a portion of the revenue, payments, or other compensation. In a concession relationship, it is crucial for the private partner to assume certain risks, such as financial risks, management, maintenance, or operational risks, while the public entity retains control and a regulatory framework to ensure the proper functioning of services in the public interest. The specific terms and details of public-private partnerships (PPP) and concession relationships may vary by country, region, or specific projects. Competent authorities and legislation establish procedures and guidelines for the conclusion and implementation of such partnerships.

What types of public-private partnerships do we offer?
What are the advantages of public-private partnerships?
For what types of buildings can we enter into a public-private partnership?

Currently, there are three active public-private partnerships following the DBOT model (design - built - operate - transfer). We are also open to other models such as BOT, BT, and, by agreement, any other. Among the numerous advantages, one significant benefit is the redistribution of various risks between both partners. Additionally, one partner can assume responsibilities in areas where the other may be weaker or lacks authority or expertise. Collaboration can be established for all types of buildings, varying in size and purpose. When involving both private and public organizations, these partnerships are most commonly formed for educational, cultural, sports institutions, etc.