Description
Management contracts cover many agreement types. Still, the main common features are that the awarding authority engages the contractor to manage a range of activities for a relatively short period (2 to 5 years). Management contracts tend to be task-specific, and input rather than output focused. Operation and maintenance agreements may have more outputs or performance requirements. The simplest management contracts involve the private operator being paid a fixed fee by the awarding authority for performing specific tasks - the remuneration does not depend on the collection of tariffs, and the private operator does not typically take on the risk of asset condition.
Instrument category
Public-private partnerships (PPP)
Implementation status
High - much evidence available
Enabling conditions and success factors
- A robust PPP legislative framework in the country of project development is important for PPP deals to be structured.
Instrument benefits
- See the full analysis of the benefits and risks of PPPs at the World Bank's PPP web resource: https://ppp.worldbank.org/public-private-partnership/overview/ppp-objectives
Challenges and risks to implementation
- See the full analysis of the benefits and risks of PPPs at the World Bank's PPP web resource: https://ppp.worldbank.org/public-private-partnership/overview/ppp-objectives
