Principles of Project Finance

(3) Acquisition of the facilities for the then current market value (if the facilities

being providedhavean alternative private sector use such as housing or office

accommodation), perhaps with a cap on the price, since there is an obvious

danger that the Contracting Authority could effectively end up paying twice,

once under the Project Agreement and again in the residual value payment

(4) Option to renew the contract instead of taking over the project facilities

(5) Option to put a renewed contract out for a new competitive bid (in which

the existing Project Company may participate); the winner of the bid may

purchase the facilities provided by the Project Company (at a preagreed

price), or provide new facilities

Alternatives (1)–(3) may be structured ...