Partnership

Partnership is an investment which the investor will involve directing in decision making and risk taking of a project.

The partner comes for a long term investment with a large volume of money and shares. Partners share with each other the profits or losses of the projects. Greater Risk could mean Greater Profit.

 

Application Forms & Contract Models ( DBF, BOT , BOO , PPP , … )

DBF: Contractual relationship between a public sector body and a private sector contractor for the design, construction and financing of a contract, but with no operational or maintenance responsibility. This type of contract is an extension of the Design and Build contract to include the financing of the contract by the private sector.  It is anticipated that many of the developer-led projects to install interim facilities under the Serviced Land Initiative may be provided on a Design, Build and Finance basis. Some, however, may also be operated by the developer.


BOT: The private sector is responsible for design, construction, operation, and services and financing of the investment. Attractiveness for private partner requires- high project volume to cover effort, well elaborated framework. Contract documents have to balance risk sharing and tariff adjustment to avoid unreasonable high-price offers or refusing of contract. After contract termination the responsibility for facilities is by the local authority


BOO: The private sector is responsible for design, construction, operation, and services and financing of the investment. Contract documents have to balance risk sharing and tariff adjustment to avoid unreasonable high-price offers or refusing of contract. After contract termination the facility is owned by the private entity.


PPP: Project means a project based on a contract or concession agreement, between a Government or statutory entity on the one side and a private sector company on the other side, for delivering an infrastructure Service on payment of user charges. Private Sector Company means a company in which 51% or more of the subscribed and paid up equity is owned and controlled by a private entity.

 

Buy-Back: Allows a retailer to return unsold inventory up to a specified amount at an agreed upon price. Increases the optimal order quantity for the retailer, resulting in higher product availability and higher profits for both the retailer and the supplierDownsides that buyback contract results in:

ü  Surplus inventory for the supplier that must be disposed of, which increases supply chain costs

ü  Misleading for the supply chain as it reacts to (inflated) retail orders, not actual customer demand

Most effective for products with low variable cost, such as music, software, books, magazines, and newspapers so that the supplier can keep the surplus


LROT: (Lease, Renovate, Operate, Transfer) A private entity receives a franchise to finance, design, build and operate a leased facility (and to charge user fees) for the lease period, against payment of a rent.

 

BOOT: (Build, Own, Operate, Transfer), A private entity receives a franchise to finance, design, build and operate a facility (and to charge user fees) for a specified period, after which ownership is transferred back to the public sector.

 

BBO: (Buy, Build, Operate), Transfer of a public asset to a private or quasi-public entity usually under contract that the assets are to be upgraded and operated for a specified period of time. Public control is exercised through the contract at the time of transfer


BLOT: (Build, Lease, Operate, Transfer)


BTO: (Build, Transfer, Operate) Combined tendering process for design, construction, operation and services. One contract partner, less interfaces, higher responsibility of contractor, and the contractor is not responsible for long term financing: investment will be paid after completion of construction or after guarantee period (Transfer)

 

BBO: (Buy, Build, Operate)


BOOM: (Build, Own, Operate, Maintain)

 

Own & Maintenance:

 

DBFO: (Design Build Finance Operate), the private sector designs, finances and constructs a new facility under a long-term lease, and operates the facility during the term of the lease. The private partner transfers the new facility to the public sector at the end of the lease term.

 

DBFOPO: (Design ,Build ,Finance ,Operate , Partly , Own)