Background
Building projects cover a wide range of industries including schools, hospitals and prisons all typically found in PPPs. Such projects:
- are technically simple but may become a little more complex if it is a hospital with major diagnostic equipment;
- contain little equipment and material which may need to be imported;
- do not usually generate foreign exchange;
- rental basis is usually calculated on a figure/per sq ft/year. The figure may be based on the area used by the concessionaire (a higher figure because it has to include a share of the common parts) or on the area used by the concessionaire plus a share of the common parts (a lower figure because it is based on a larger area);
- are often based on a concession in which the operator is paid an availability and an operating and maintenance element;
- are subject to straightforward taxation calculations;
How Promoter handles Building Projects
Promoter can prepare models for generic buildings and for theme parks (including an events centre, a car park, restaurants and hotel)
Typical Project Cash Flows
The revenues will typically be constant over the life of the project. The operating and maintenance costs will vary considerably from one project to another