Contract structure
In the PPP concession model, a separate company is set up for each project and the services are provided as specified in the DBFM contract. This Project BV does not carry out the work itself, but subcontracts the design and construction, as well as the operation and maintenance work. Funding is provided by a combination of its own equity and external capital.
Click here for a schematic overview of the contract structure.
Cash flows
The public sector client only pays for the services as they are provided. The Project BV therefore has to arrange for the funding itself during the design and the construction.
Click here for a schematic overview of the cash flows during the design and construction phase.
After completion of construction, the client will pay according to the availability or services provided. This availability payment is used by the Project BV to repay the funding, to pay for the operation and maintenance activities and to provide a dividend for the shareholders.
Click here for a schematic overview of the cash flows during the operation and maintenance phase.