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What is the difference between EPC and PPP model?
While the EPC model transfers a lot of risk on the private party, the PPP model makes the government solely liable for the finances. Both the models, though having their own advantages, pose problems for one of the entities.
Is EPC a PPP?
This is a PPP model for the development of infrastructure projects especially highways. Under this model, the cost is completely borne by the government. The private sector’s participation is minimum and is limited to the provision of engineering expertise. …
What is EPC in infrastructure?
Engineering, procurement, and construction (EPC) contracts (a type of turnkey contract) are a form of contract used to undertake construction works by the private sector on large-scale and complex infrastructure projects.
What is difference between EPC and BOT contract?
Under an EPC contract, the government funds the construction and the road developer only has to develop the project in a stipulated period of time. In the BOT mode, the developer invests in the project and recoups it either through tolling rights or annuity.
What is difference between EPC and turnkey?
An EPC process will involve that contractor working to get another party to get the startup construction process handled. The turnkey process will involve the contractor being fully responsible for every part of what is happening here.
What is the PPP model?
Public-private partnership (PPP) is a funding model for a public infrastructure project such as a new telecommunications system, airport or power plant. The public partner is represented by the government at a local, state and/or national level. The private-sector partner assumes all risk.
What is the difference between EPC and design build?
An EPC project typically results in a turnkey facility. EPC contractors are often handed little more than performance requirements (output levels, uptime levels, maintenance expense maximums, etc.), whereas most design-build contracts provide at least some design detail in the bridging documents.
What is EPC in manufacturing?
EPC (Engineering, Procurement, and Construction) is a contract-based project delivery model. At the end of the EPC contract, the completed project is handed over to the end-user or owner.
How does an EPC company work?
The engineering and construction contractor will carry out the detailed engineering design of the project, procure all the equipment and materials necessary, and then construct to deliver a functioning facility or asset to their clients. Companies that deliver EPC Projects are commonly referred to as EPC Contractors.
What is PPP model and its importance?
Public-private partnership (PPP) is a funding model for a public infrastructure project such as a new telecommunications system, airport or power plant. PPP arrangements are useful for large projects that require highly-skilled workers and a significant cash outlay to get started.
Is EPC better than PPP in complex infrastructure projects?
While the PPP model may seem better in complex infrastructure projects, the EPC model has many advantages over it. Firstly, it is more viable for the private party.
What is EPC model in civil engineering?
EPC Model – Engineering, Procurement & Construction: A private entity will bid for the tender and execute infra projects on behalf of government. This means that cost for executing the project would be catered by government. Designing to execution in the turf of private entity.
What are the advantages of EPC model of road construction?
Firstly, it is more viable for the private party. In the EPC model the whole capital is raised by issuance of government bonds and by securing road toll post-construction, contrary to the EPC model where the private party is responsible for raising finances.
What is an EPC contract?
An EPC contract encompasses the E (Engineering/Design), P (Procurement), and the C (Construction) which is the entire project from concept to commissioning (turnkey). However, EPC is a very broad and sometimes wrongly used term.