Addressing the structure and making a decision on this will be taken with full knowledge that it is the consortium that will be reformed as a project vehicle and that the sponsors will become the shareholders of this project vehicle. Funding the ppp through project financing means that sponsors need protection from ppp risks. They require a limited appeal structure involving the creation of an SPV. All or most of the ppp project risks outlined in the project agreement are covered by the construction contractors and D-M. These contractors take responsibility for the risks associated with the PPP project by „passing” through the SPV the obligations they assume with the public procurement authority as part of the project agreement. Once you have gathered these elements and expressed the views of shareholders, you will be able to examine all remuneration and profit sharing and possibly adjust participation rates to the circumstances. A destination/project vehicle (SPV) is a legal person carrying out a project. All contractual agreements between the various parties are negotiated between them and the SPV. An SPV is a commercial company created by an agreement (also known as the association protocol) between shareholders or sponsors, in accordance with the corresponding law of a country. The shareholders` pact defines the basis of a company`s incorporation and contains information such as name, ownership structure, management control and social affairs, authorized social capital and the amount of debts of its members. Any member of the consortium (with the exception of certain contractors names) must commit to participate in the future SPV as a shareholder and to take a stake in that company. Shareholders hold equity in the shares defined and agreed in the shareholders` pact. The size of a stake can vary from very small (pin-point-equity) to large.
Normally, it is the main project sponsors who together hold the largest amounts of equity. The SPV is usually put in place shortly before the conclusion of the project agreement with the public procurement authority, i.e. for financial conclusion. The members of the consortium are usually SPV shareholders, as well as other shareholders, such as investors. [5] However, not all members of the consortium will want to be shareholders of the SPV.
