Traditional

Risk transfer
Government bears operational performance risk and pricing risk.

Payment streams
Government pays design fees, construction contract, and then enters multiple operating contracts.

Relationship
Short-term relationships with contractors.

PPP

Risk transfer
Consortium bears operational performance risk and pricing risk.

Payment streams
It pays for design, construction and all operating costs. Government pays an annual fee if performance is met. Single contract.

Relationship
Long-term partnership between Government and consortium.