Concession Agreement Project Finance

The more attractive and profitable a concession is, the less likely it is that a government will offer tax advantages and other incentives. It may be acceptable for sponsors to deposit their equity contributions over time, or even pay them back-end or after project completion, as long as lenders are satisfied with the creditworthiness of these sponsors. These sponsors could also offer lenders some form of credit enhancement for additional collateral, for example. B a bank loan. When we talk about the industrial development of the project, it is indeed a question of making the necessary preparations to start the construction work, but not yet start the construction itself. Indeed, the necessary funding is not yet available; In fact, the work begins when the structuring of the activity is completed, as described on these pages. Public concessionaires. What happens if the project company is publicly owned? Eurostat`s rules allow its assets to remain on the public sector balance sheet when it is a `market unit`, i.e. a public entity that already operates on an at-our-end basis from the State, complies with the same rules on subsidies or guarantees as a private company and was not created specifically for the project in question.

This obviously leaves a lot of room for the use of “public-public partnerships” (see ยง17.2.2). Sales contracts: these contracts generate the revenue of the project company. A detailed analysis of the nature and necessary characteristics of these treaties can be found in Chapters 3 and 7Chapter 3Chapter 7. Experience with the transfer of airports from the public to the private sector shows that the complexity of the process does not allow for a single method of privatization of airport operations to meet the expectations of all interested parties – investors, national governments, local communities, airlines and old and new airport management. The main methods and criteria for airport privatization, which can be adopted under prevailing conditions, vary. Different approaches to privatization lead to different ownership models, with different levels of state control at privatized airports. While a management or private financing contract still allows for a high level of control thereafter, the potential impact will be rather limited after the IPO or sale to a strategic partner (Carney and Mew, 2003); Colella, 1998; Gillen, 2011; Graham, 2014). The optimal position of lenders with regard to the project agreement itself is as follows: there are several parties in a project financing, depending on the nature and scale of a project. The most common parts to project financing are: Typical project financing documentation can be redirected to four main types: for example, there is a concession contract between the French and British governments…

Comments are closed.