DBO contracts


Produced in partnership with Victoria McGie
Practice notes

DBO contracts


Produced in partnership with Victoria McGie

Practice notes
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The demand for public Infrastructure at a time when public purse strings are tight, coupled with a lack of public sector expertise in delivering complex facilities (such as water treatment plants and energy plants), has led to an increase in the involvement of the private sector in the Procurement and operation of public infrastructure.

There are a wide range of possible arrangements for involving public sector risk and expertise in the procurement of public infrastructure. One of these arrangements is Design Build Operate (DBO). It is particularly popular for water treatment plants.

For information on Variations of the DBO structure, see Practice Notes: Infrastructure projects—project structure and BOT contracts.

DBO involves a government (often in the form of a government body or Local authority) engaging a single contractor to:

  1. •

    design and build the infrastructure facility

  2. •

    operate the facility for a period (typically between 10–30 years)

The government typically finances the infrastructure project, either through tax revenues, grants (eg from international development funds) or debt finance and pays the contractor for developing and operating the facility. The government

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Jurisdiction(s):
United Kingdom
Key definition:
Infrastructure definition
What does Infrastructure mean?

Infrastructure is a broad term which can encompass a wide range of sectors and types of projects, ranging from schools, hospitals, roads and railway lines to wind, waste and water projects, oil and gas facilities, pipelines and processing plants. These may be domestic UK projects or international projects.

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