Public-Private Partnership (PPP)

The PPP model is the most common form for the government project operation. Its repayment based on the cash flow produced by infrastructure and guaranteed by the government. A big infrastructure construction project shall be set up by the government and a private company. Both of government and private sector shall invest on this project by different ratio. Government will transfer the project to the private company after the project finish. The private company will operate and maintain the infrastructure by paying for lease. After deadline, the private company will return the operation ownership to the government for free. The expected cash flow produced by infrastructure during the term could be used as collateral to borrow money from lenders.

It usually needs project bidding and negotiations with the government, and all the PPP projects are selected by the government. So you need know the project sources at the earliest time and make good preparations for the bidding. Our company could help potential clients find the right PPP projects and design financing structure for clients who can work with PPP model and help you build up the project and provide financing.

Build-Operate-Transfer (BOT)

The BOT is the abbreviation of Build-Operate-Transfer. It is a way by which private capital participates in the foundation facilities. The government issued a charter to the private sector to allow them to raise funds in a certain period to build and operate an infrastructure as well as products and services. The government may restrict the quantity and price of the public services or products offered by the private sector but guarantee the profit level.

In the BOT projects, you need operate finances, own and construct the facility or system and operate it commercially. The project company you can see is the key of this model. You need help for the structure of running the project company, also need find lenders and contractors to work with together. Regarded with lenders, you must consider the revenues and who purchase project output from the project company. All the questions you can get the answers and solutions from us and we don’t work as any interest party in the model, but we can provide finance support if the project is high value.

Build-Lease-Transfer (BLT)

BLT includes build, lease, transfer. Under this type of model, a facility which already exists and is under operation, is entrusted to the private sector partner for efficient operation, subject to the terms and conditions decided by mutual agreement. The contract will be for a given but sufficiently long period and the asset will be transferred back to the government at the end of the contract. For example, leasing a school building or a hospital to the private sector along with the staff and all facilities by entrusting the management and control, subject to pre-determined conditions could come under this category. Ownership of the facility is transferred to the government upon completion of contractor, and the concessionaire is granted the right to operate the facility and receive government payments (lease payment plus operational cost) based on its operational performance for a specified period of time.

The BLT bidder will have to provide financing for the project through a structure and our team can provide special purpose entity with equity and loans to get the facility from the government for the clients and help clients to find the professor organizations for the operations during the lease and help the clients to make sure the repayment of the investor’s expense plus profits. At the end of the lease period and once all the finance amount has been settled, we will help the clients return the facility back to the government.