Public-Private Partnerships

Chapter 13

Service-Fee Mechanism

§13.1 Introduction

This chapter considers issues relevant to the Service-Fee mechanism:

• scope of services (§13.2);

• Service-Fee payment structure (§13.3);

• structuring Service Fees based on:

– usage/demand (§13.4);

– Availability/service (§13.5); or

– mixed usage and Availability (§13.6);

• dealing with third-party revenues (§13.7).

§13.2 Contract scope

A preliminary issue, before considering various Service Fee mechanisms in more detail, is what should be included within the scope of a PPP Contract anyway? There is a fundamental difference between projects such as roads, where most if not all the services (such as accident recovery, repair and maintenance) are normally included within the scope of a PPP Contract, ...