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Table 3 Description of the types of financing for transport infrastructures and risk sharing
Public financing (public client) | Partnership contract | Concession-holding contract | |
|---|---|---|---|
Provider’s remuneration | Financing by the public authority | Rent paid by the public authority, calculated in accordance with the level to which performance criteria are respected. | Collection of tolls paid by the user Revenues linked to traffic. |
Contracts | Separated short term contracts with different providers for the design, construction, maintenance and operation. The public authority manages the contracts | The provider is generally responsible for the design, construction, operation, maintenance and cleaning of the infrastructure. | The concession-holder is generally responsible for the design, construction, operation, maintenance and cleaning of the infrastructure. |
Risks assumed by the public authority | Risk of force majeure Traffic risk Commercial risk | Risk of force majeure | |
Risks assumed by the private provider | Political risk Social risk Financial risk Regulatory risk (depending on the contract) Technical risk Geological risk Operational risk Maintenance risk Etc | Traffic risk Commercial risk Political risk Social risk Financial risk Regulatory risk (depending on the contract) Technical risk Geological risk Operational risk Maintenance risk | |
Penalties (delay, lack of respect of contract clauses or performance criteria) | yes | yes | yes |
Bonus should the contract objectives be exceeded | yes | yes | yes |
Performance criteria (service quality, etc.) | yes | yes | yes |