Affermage Agreement Definition

With regard to the lease/lease agreements, the operator takes the lease of infrastructure and equipment by the government for an agreed period. In general, the government retains responsibility for investment and therefore bears investment risks. Operational risks are transferred to the operator. However, under the lease, certain assets may be transferred permanently for a period of time covering the economic life of the assets. Fixed facilities and land are leased for a longer period than for mobile facilities. Land to be used by the tenant is generally transferred for a period of 15 to 30 years. Leases and contracts are generally public-private agreements under which the private operator is responsible for the operation and maintenance of the distribution company, but not for the financing of the investment. Water and Wastewater Agreement Affermage Type Agreement – Example 4 (French) – The Agriculture focuses on rural water supply and includes 55 rural centres (villages). The framework is in the form of operating contracts for 51 mini-water systems (51 mini-AEP operating contracts). The project will last 5 years from 2008.

Each contract is concluded between the local government (owner of the heritage owner), the local consumer association and the private operator. Abstracts in English, documents in French. The partnership between the public and private sectors is purely contractual in nature, and the partnership between the public and the private sector is based exclusively on contractual links, whereas in an institutional PPP there is cooperation between the public and private sectors within a given unit. Both regimes include the delegated management of traditional public-sector activities to the private sector. In the first type of PPP, rights and obligations are governed by a management contract or a number of contracts. In the second, they are guaranteed by the company`s statutes and by the shareholders` pact between public and private parties. In both cases, there is a contractual scheme. Leasing/farming: a variant of the PPP concession model is the lease. This model is consistent with the concession model, with the exception of infrastructure investments and financing, which are the responsibility of the public and not the private partner. This form of contractual PPP may be appropriate in situations where assets have already been established and there is no need to invest in infrastructure, or where the risk premium for transferring this responsibility to the private partner is very high.

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