Proposed Concession Structure Clause Samples

Proposed Concession Structure. The concession is structured to facilitate a limited recourse project financing in which the Project is financed mainly on the basis of forecast revenue streams and not through Government debt or balance sheet. This form of financing is now well established globally as a means of developing airport projects and its structure is familiar and indeed mandated by Project finance institutions. As such, the wheel should not be reinvented: tried and tested contractual structures need to be implemented to ensure familiarity to financing institutions and access to private capital. The core structure centers around a Grantor-Concessionaire contract relationship, established on the basis of allocating risks and responsibilities to the party best-placed to manage and control each risk. ProjectCo will raise private capital from equity and debt providers and will enter into the agreements necessary to develop the Project. Following international precedent, the chart below illustrates the proposed contractual structure for the Project. Figure.2: Airport Concession Structure Sponsor / Proposing Group