GLOSSARY OF TERMS GLOSSARY OF TERMS

Government Infrastructure Projects (PPP): Infrastructure projects owned, developed and implemented jointly by the Government and private sector, through a partnership arrangement. Public Private Partnership means an arrangement between government or statutory entity or government owned entity on one side and a private sector entity on the other, for the provision of public assets and/or related services for public benefit, through investments being made by and/or management undertaken by the private sector entity for a specified period of time, where there is a substantial risk sharing with the private sector and the private sector receives performance linked payments that conform (or are benchmarked) to specified and pre-determined performance standards, measurable by the public entity or its representative.

Government Infrastructure Projects (Traditional Procurement): Infrastructure projects owned, developed and implemented by the Government.

Private Sector Infrastructure Projects: Infrastructure projects implemented by the private sector.

Annuity: In this type of BOT model, the government harnesses private sector efficiencies through contracts based on availability/performance payments. The granting authority pays the concessionaire annuities on scheduled dates throughout the concession period. 

Build Lease Transfer (BLT):  This type of PPP model involves building a facility, leasing it to the Government and transferring the facility after recovery of investment.

Build Operate Transfer (BOT):  BOT is a framework where the 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. This type of arrangement involves greatest level of private sector participation across a set of different functions and often covering a long period. The risk allocation to the private sector may be significant, including volume and finance risk, and potentially price risk. 

Build Own Operate Share Transfer (BOOST): This is a type of PPP model, in which a concessionaire is authorized to finance, construct, own operate and maintain, share a part of the revenue and transfer the infrastructure facility at the end of the period. The proponent is allowed to recover its total investment, operating and maintenance costs plus a reasonable return thereon by collecting tolls, fees, rentals or other charges from facility users.

Contract Period: The length of time measured in years that the terms of a contract agreement are in place. 

Concessionaire: The private player who signs a concession with the government department to develop a project and / or operate a facility as per the terms and concession of the Concession Agreement. 

Concession Period: The period beginning from the appointed date and ending on the termination date of the concession.

Financial Closure Year: The year in which private sponsors agree to a legally binding agreement to invest funds or provide services. Closure occurs when there is legally binding commitment of private sponsors to mobilize funding or provide services. The definition of financial or contractual closure varies among types of private participation.

Harmonized Master List of Infrastructure Sub-Sectors: This refers to the Harmonized List (as per notification of Ministry of Finance, Department of Economic Affairs vide Gazette No. 240, dated October 13, 2014,) of Infrastructure Sectors and sub-sectors. The database captures information on projects aligned to this Harmonized list. These sectors and sub-sectors are listed in Appendix 4 of this User Manual.

Lease Develop Operate Transfer (LDOT): In this type of PPP arrangement, assets are leased out to the private sector under specific terms, to operate and maintain the asset for the term of the concession period, after which the assets are transferred to the authority.

Management contract: The private partner takes responsibility for managing specified aspects of the service provision. Ownership and investment typically remain with the public sector, although some rehabilitation responsibilities can be transferred to the private partner.

Project Capacity: It is the size of a project measured in the units of the capacity type assigned to the project. For example:

  • Number of kilometers is used for road, railway, energy transmission, and telecommunications long-distance carrier projects.
  • Installed megawatts are used for electricity generation projects.
  • Thousands of cubic meters per day is used for water treatment plants.
  • Thousands of installed connections is used for telecommunications network and water or electricity distribution projects.
  • Throughput (thousands of TEU per year) is used for seaport terminals.
  • Population (thousand) is used for electricity and electricity distribution projects when information of installed connections is not available.

Operations & Maintenance (Service contract): The Government bids out the right to deliver a specific service or gives part of the undertaking to the private sector for operations and maintenance of the assets.