Infrastructure projects and international investment
In international projects, governments are concerned with building public facilities or managing public services and thus meeting the needs of citizens by appealing in the form of financing, technical and management expertise and contributions of technology to private, national and / or foreign operators and investors by defining the execution criteria and retaining the power of control. Infrastructure projects are thus often the subject of public / private partnerships based on the BOT concession which applies in a vast area.
Insofar as the government wishes the project to be carried out and managed without calling on public funds, or with a contribution limited to either initial grants or during the duration of the project, the amount of which will have been defined and possibly public guarantees but limited, operations are carried out with project financing arrangements .
Investors and promoters want protection against risks or a limitation thereof, it is financing without recourse ( no-recourse financing ) or limited recourse ( limited recourse financing ). The promoters wish that the project does not weigh on their accounts and the accounting translation of the absence of risk requires a rigorous and complete analysis of the set-up, by examining in particular the risks in the event of bankruptcy. Investors are often funds, whose statutes and regime exclude them from participating in projects that may involve a risk beyond the loss of the investment.
The contractual arrangement is a complex arrangement, where the concession contract is one of the elements of the overall arrangement which will include construction contracts, financing contracts, etc.
In addition, to ensure the transparency and economic efficiency of the process, the project is awarded following international calls for tenders.