A Project Company is a separate legal entity created to carry out one defined project, such as a solar plant, toll road, property development, factory, or joint venture asset. It is used to ring-fence ownership, contracts, financing, cash flows, and risks so the project can be managed and funded on its own merits. Understanding the term helps readers interpret company structures, project-finance deals, annual reports, lender documents, and governance arrangements more accurately.

1. Term Overview

• Official Term: Project Company
• Common Synonyms: project SPV, project vehicle, project entity, concession company, asset-level company
• Caution: These are not always exact synonyms.
• Alternate Spellings / Variants: Project Company, Project-Company
• Domain / Subdomain: Company / Entity Types, Governance, and Venture
• One-line definition: A Project Company is a company formed to develop, own, finance, manage, or operate a specific project.
• Plain-English definition: It is a “separate box” built around one project so that the project’s money, obligations, and risks do not get mixed up with everything else the sponsor owns.
• Why this term matters:
• It is central to project finance, joint ventures, PPP structures, real estate development, and infrastructure deals.
• It affects ownership, control, liability, fundraising, reporting, and risk management.
• Investors and lenders often assess the Project Company, not just the parent company.

2. Core Meaning

From first principles, a Project Company exists because businesses often want to keep one major project separate from the rest of the group.

What it is

A Project Company is a legally incorporated entity set up for a specific project or defined business purpose. It may own the project assets, sign the project contracts, borrow money, receive revenue, and pay operating costs.

Why it exists

If a sponsor runs a large project directly inside its main company:

• project risks mix with the sponsor’s other businesses,
• lenders may struggle to isolate cash flows,
• joint venture partners may find governance messy,
• selling or refinancing the project later becomes harder.

A separate entity solves many of these problems.

What problem it solves

A Project Company mainly solves five practical problems:

1. Risk isolation: keeps project liabilities more separate from the wider group.
2. Financing clarity: lets lenders assess the project’s own cash flow.
3. Ownership clarity: makes it easier for multiple sponsors to share equity.
4. Contract clarity: one entity signs project-specific contracts.
5. Exit flexibility: easier to sell shares in a project-level company than transfer every asset separately.

Who uses it

• project sponsors
• infrastructure developers
• real estate developers
• energy companies
• governments and PPP authorities
• banks and project-finance lenders
• private equity and infrastructure funds
• strategic joint venture partners

Where it appears in practice

You commonly see Project Companies in:

• power and renewable energy projects
• roads, ports, airports, and rail concessions
• real estate and industrial parks
• telecom towers and data centers
• mining and natural resources
• manufacturing plants
• hospital or social infrastructure PPPs

3. Detailed Definition

Formal definition

A Project Company is a company established to undertake, hold, finance, and/or operate a specified project, with the project’s assets, contracts, revenues, and liabilities housed within that entity.

Technical definition

In project-finance practice, a Project Company is often the ring-fenced borrowing and operating vehicle through which sponsors implement a project. Its debt is expected to be serviced primarily from the project’s own cash flows rather than the general balance sheets of the sponsors.

Operational definition

Operationally, the Project Company is the entity that may:

• obtain permits and licenses,
• enter into EPC, O&M, concession, lease, supply, and offtake contracts,
• own or lease project assets,
• raise debt and equity,
• operate project bank accounts,
• pay lenders and vendors,
• distribute residual cash to shareholders.

Context-specific definitions

In project finance

A Project Company is usually the core asset-owning and borrowing entity for a single project. It is often structured to be as ring-fenced as possible.

In real estate

A Project Company may be formed for one land parcel, one tower, one township phase, or one development program.

In joint ventures

Two or more companies may create a Project Company to pursue one shared venture while keeping their broader businesses separate.

In regulated or document-specific contexts

In some sectors, regulations, concession agreements, lending documents, or prospectuses define “Project Company” more narrowly. Always verify the exact contractual or regulatory definition used in the relevant documents.

Important: Not every Project Company is legally identical across jurisdictions, and not every SPV is a Project Company.

4. Etymology / Origin / Historical Background

The term is straightforward in origin:

• Project refers to a defined undertaking with a specific objective, budget, and timeline.
• Company refers to the incorporated legal entity used to carry out that undertaking.

Historical development

The term became more widely used as modern project finance evolved. Important drivers included:

• growth of limited liability corporate structures,
• large infrastructure projects requiring external financing,
• public-private partnership models,
• independent power projects,
• real estate development structures,
• cross-border joint ventures.

How usage changed over time

Earlier, many projects were undertaken directly by governments or large corporate balance sheets. Over time, financing and governance became more specialized. That led to the rise of asset-level entities designed for:

• lender security,
• risk segregation,
• sponsor co-investment,
• concession management,
• structured exits.

Important milestones

While there is no single universal milestone, usage expanded noticeably with:

• build-operate-transfer and concession models,
• private infrastructure financing,
• renewable energy project booms,
• institutional investment in operational infrastructure assets.

5. Conceptual Breakdown

A Project Company is easiest to understand by breaking it into components.

5.1 Sponsors / Shareholders

Meaning: The parties that own the Project Company.

Role: They provide equity, strategic direction, and sometimes guarantees or support.

Interaction with other components: Their rights are usually governed by the constitutional documents and shareholders’ agreement.

Practical importance: Ownership percentages affect control, board rights, reserved matters, and exit rights.

5.2 Defined Project Scope

Meaning: The Project Company usually exists for a specific project, asset, concession, or development.

Role: Keeps the entity focused on one business purpose.

Interaction: Financing, permits, contracts, and reporting are tied to this scope.

Practical importance: Lenders and co-investors want to know exactly what sits inside the company and what does not.

5.3 Assets, Rights, and Licenses

Meaning: The company may hold land rights, leases, permits, equipment, concessions, and intellectual or operating rights.

Role: These are the legal and economic foundations of the project.

Interaction: Without them, contracts and financing may not be bankable.

Practical importance: Asset ownership and transfer restrictions are major diligence points.

5.4 Contract Network

Meaning: A Project Company often sits at the center of a contract web.

Typical contracts include:

• concession agreement
• EPC contract
• O&M agreement
• fuel supply agreement
• offtake or PPA
• land lease
• insurance policies
• debt documents
• shareholder agreement

Role: Contracts allocate risk.

Interaction: Revenue, construction, operating performance, and lender protections all depend on these agreements.

Practical importance: A well-structured contract package often matters more than the label “Project Company.”

5.5 Capital Structure

Meaning: The mix of equity and debt used to fund the project.

Role: Determines financial risk and return.

Interaction: Capital structure depends on project cash flow stability, sponsor strength, and lender appetite.

Practical importance: Too much debt can make the Project Company fragile; too little debt may reduce equity returns.

5.6 Governance and Control

Meaning: The rules on who controls decisions.

Role: Sets board composition, veto rights, reserved matters, reporting lines, and dispute resolution.

Interaction: Governance affects fundraising, operations, related-party dealings, and exits.

Practical importance: Even a minority shareholder may have significant control if agreements grant veto rights.

5.7 Cash Flow Waterfall

Meaning: The order in which cash is used.

Typical order:

1. taxes and statutory payments
2. operating costs
3. maintenance and required reserves
4. debt service
5. covenant-related accounts
6. distributions to equity

Role: Protects essential obligations before dividends are paid.

Interaction: Closely linked to financing documents and covenants.

Practical importance: A Project Company can be profitable on paper but unable to distribute cash because of waterfall restrictions.

5.8 Risk Allocation

Meaning: Different risks are allocated to parties best able to manage them.

Examples:

• construction risk to EPC contractor
• operating risk to O&M operator
• demand risk to the project or offtaker depending on structure
• political/regulatory risk partly borne by sponsors, insurers, or public counterparties

Role: Makes projects financeable.

Interaction: Risk allocation drives pricing, financing terms, and sponsor returns.

Practical importance: Poor risk allocation is a common reason projects fail.

6. Related Terms and Distinctions

Related Term	Relationship to Main Term	Key Difference	Common Confusion
Special Purpose Vehicle (SPV)	Often overlaps	An SPV can be formed for many purposes, not just a real operating project	People assume every SPV is a Project Company
Subsidiary	A Project Company may be a subsidiary	A subsidiary is defined by ownership/control, not by purpose	People confuse ownership status with business purpose
Joint Venture Company	A Project Company may also be a JV company	JV focuses on shared ownership; Project Company focuses on project purpose	A JV company may hold multiple businesses, not just one project
Holding Company	Usually above the Project Company	Holding company mainly owns shares; Project Company usually owns/operates the asset	Investors sometimes assume the project sits in the holding company
Operating Company	May be the same entity or separate	An operating company runs operations broadly; a Project Company is project-specific	Not all operating companies are project-specific
Shell Company	Very different	A shell may have little or no operations; a Project Company usually has a defined operating objective	Both may be “special” entities, but they are not the same
Concessionaire	Often the Project Company in PPPs	A concessionaire is the entity holding concession rights; sometimes that entity is the Project Company	People use the terms interchangeably even when legal roles differ
Asset Company	Similar in some sectors	Asset company may simply own the asset; a Project Company may also borrow, contract, and operate	Asset ownership alone does not capture governance and financing structure
Issuer / Finance Vehicle	Sometimes sits beside the Project Company	Issuer may only raise securities; Project Company is usually closer to the underlying asset and operations	Confusion is common in structured finance

Most commonly confused terms

Project Company vs SPV

• Overlap: very high
• Difference: SPV is broader; Project Company is more specifically tied to a project.
• Rule of thumb: A Project Company is often an SPV, but not every SPV is a Project Company.

Project Company vs Subsidiary

• Difference: “Subsidiary” answers who controls it.
• Project Company answers why it exists.

Project Company vs Joint Venture

• Difference: JV describes the ownership arrangement; Project Company describes the operating purpose.

7. Where It Is Used

Finance

This is one of the most important contexts. Project Companies are central to project finance, limited-recourse finance, acquisition structures, and infrastructure funding.

Accounting

They matter for:

• consolidation analysis,
• joint control assessment,
• equity method accounting,
• related-party transactions,
• contingent liabilities and guarantees.

Stock Market

Listed sponsors often disclose Project Companies in:

• annual reports,
• segment notes,
• material subsidiary lists,
• guarantee and commitment disclosures,
• investor presentations.

Policy / Regulation

Project Companies appear in:

• PPP structures,
• infrastructure concessions,
• energy licensing,
• transport regulation,
• environmental approvals,
• public procurement frameworks.

Business Operations

They are used to:

• separate one business line,
• track project economics,
• structure partnerships,
• manage contract accountability.

Banking / Lending

Banks use the Project Company as the borrowing base for:

• asset security,
• escrow arrangements,
• covenant monitoring,
• cash waterfall controls,
• step-in rights.

Valuation / Investing

Investors value Project Companies based on:

• project cash flow,
• concession life,
• regulatory stability,
• operating performance,
• debt structure,
• exit potential.

Reporting / Disclosures

They appear in sponsor and lender disclosures, especially where material obligations, guarantees, or related-party arrangements exist.

Analytics / Research

Analysts use Project Company data to assess:

• asset-level leverage,
• sponsor exposure,
• covenant headroom,
• expected equity returns,
• project pipeline quality.

Economics

The term itself is not a core economics term, but it appears in infrastructure economics, industrial organization, and public-private project analysis.

8. Use Cases

1. Renewable Energy Plant

• Who is using it: Renewable developers, infrastructure funds, banks
• Objective: Build and operate a solar or wind project
• How the term is applied: A separate company is formed to hold permits, PPA rights, land rights, debt, and operating contracts
• Expected outcome: Lenders assess the plant’s cash flow independently; sponsors can bring in co-investors later
• Risks / limitations: Weather risk, curtailment, tariff disputes, construction delays, grid connection issues

2. Toll Road or PPP Concession

• Who is using it: Sponsors, governments, concession authorities, lenders
• Objective: Deliver a public infrastructure project through a ring-fenced concession entity
• How the term is applied: The Project Company signs the concession agreement and raises financing against expected toll or annuity cash flows
• Expected outcome: Clear accountability and asset-level financing
• Risks / limitations: Traffic risk, political risk, land acquisition issues, change in law, concession disputes

3. Real Estate Development Entity

• Who is using it: Developers, landowners, private investors
• Objective: Keep one property development financially and legally separate
• How the term is applied: A dedicated company holds the land rights, construction contracts, project debt, and customer receivables
• Expected outcome: Better project tracking, easier partner entry, cleaner exit
• Risks / limitations: Approval delays, cost overruns, sales slowdown, title issues

4. Industrial Joint Venture Plant

• Who is using it: Two strategic companies forming a manufacturing venture
• Objective: Share ownership and control of a new plant without merging whole businesses
• How the term is applied: The Project Company becomes the JV operating vehicle
• Expected outcome: Shared investment with controlled governance
• Risks / limitations: Deadlock, related-party pricing disputes, technology-sharing conflicts

5. Mining or Natural Resource Development

• Who is using it: Resource sponsors, funds, lenders
• Objective: Develop one mine, processing plant, or extraction asset
• How the term is applied: Licenses, offtake rights, and debt are placed at project level
• Expected outcome: Asset-specific risk allocation and clearer lender security
• Risks / limitations: Commodity price volatility, permit risk, environmental liabilities, local community issues

6. Data Center or Digital Infrastructure Asset

• Who is using it: Technology sponsors, REIT-like investors, lenders
• Objective: Finance a specific digital infrastructure asset
• How the term is applied: The Project Company enters customer contracts, leases land or building space, and borrows against contracted cash flow
• Expected outcome: Better project-level visibility and refinance options
• Risks / limitations: Tenant concentration, technology obsolescence, power availability, cybersecurity and uptime obligations

9. Real-World Scenarios

A. Beginner Scenario

• Background: Three founders want to build a small logistics warehouse.
• Problem: They do not want warehouse debt and contracts mixed with their existing trading business.
• Application of the term: They form a Project Company just for the warehouse.
• Decision taken: The new company signs the construction contract and takes the loan.
• Result: The warehouse finances and accounts are separated from the founders’ other business.
• Lesson learned: A Project Company creates cleaner boundaries around one asset or project.

B. Business Scenario

• Background: Two manufacturing firms want to build a battery component plant.
• Problem: Each wants participation, but neither wants the entire plant on its own balance sheet in business terms or governance terms.
• Application of the term: They create a jointly owned Project Company with defined board rights and reserved matters.
• Decision taken: The Project Company signs supplier, land, and construction agreements.
• Result: The partners share risk, funding, and governance through one ring-fenced entity.
• Lesson learned: A Project Company is a practical operating vehicle for a joint venture.

C. Investor / Market Scenario

• Background: A listed energy company has ten operating solar assets.
• Problem: Investors want to know asset-level debt and performance, not just group-level numbers.
• Application of the term: Each solar park sits in a separate Project Company.
• Decision taken: The sponsor discloses debt, ownership, and performance of material Project Companies.
• Result: Investors can value mature assets more clearly, and the sponsor later sells a minority stake in one operating Project Company.
• Lesson learned: Project-level corporate structuring can improve transparency and asset monetization.

D. Policy / Government / Regulatory Scenario

• Background: A transport authority wants a private party to build and operate a toll bridge.
• Problem: The authority needs one legally accountable counterparty dedicated to the bridge.
• Application of the term: Bid documents require the winning consortium to form a Project Company.
• Decision taken: The concession agreement is signed with that company, not directly with each sponsor.
• Result: Governance, financing, reporting, and enforcement sit in one entity.
• Lesson learned: Governments use Project Companies to create a clear concession counterparty.

E. Advanced Professional Scenario

• Background: A port Project Company underperforms because cargo volumes are lower than forecast.
• Problem: Debt service coverage weakens and distributions are blocked.
• Application of the term: Lenders analyze the Project Company’s concession terms, reserve accounts, and sponsor support obligations.
• Decision taken: Debt is reprofiled, shareholders inject fresh equity, and the operating model is revised.
• Result: The project avoids immediate default but existing shareholders face dilution and tighter controls.
• Lesson learned: A Project Company structure helps isolate and renegotiate project risk, but it does not eliminate commercial failure.

10. Worked Examples

Simple Conceptual Example

A parent company operates retail stores and wants to build one wind farm.

• If it builds the wind farm inside the parent, all retail and wind risks are mixed.
• If it creates a Project Company for the wind farm, the wind farm has its own:
• debt,
• contracts,
• bank accounts,
• governance,
• financial reporting.

That is the essence of a Project Company.

Practical Business Example

A developer plans a commercial office tower.

1. It forms City Tower Project Co.
2. That company signs: – land agreement, – architect and contractor contracts, – project loan agreement, – lease agreements with tenants.
3. Investors subscribe equity into the Project Company.
4. When construction completes, the sponsor can: – keep the company, – refinance it, – sell shares in it.

This is often easier than unwinding the project from a larger mixed business.

Numerical Example

Suppose a Project Company has:

• Total project cost: 120 million
• Debt: 84 million
• Equity: 36 million
• Annual cash flow available for debt service (CFADS): 15 million
• Annual debt service: 12 million

Step 1: Calculate project gearing

[ \text{Project Gearing} = \frac{\text{Debt}}{\text{Total Project Cost}} = \frac{84}{120} = 70\% ]

Step 2: Calculate debt-to-equity ratio

[ \text{Debt-to-Equity} = \frac{84}{36} = 2.33x ]

Step 3: Calculate DSCR

[ \text{DSCR} = \frac{\text{CFADS}}{\text{Debt Service}} = \frac{15}{12} = 1.25x ]

Interpretation

• The project is funded 70% by debt and 30% by equity.
• For every 1 of equity, it has 2.33 of debt.
• It generates 1.25 times the cash needed for scheduled debt service.

If the financing documents require a minimum DSCR above 1.20x, this year may pass. If the required threshold is higher, the project may fail the covenant test.

Advanced Example

Assume the same Project Company has a dividend lock-up rule:

• dividends allowed only if:
• no default exists,
• reserve accounts are funded,
• forward DSCR remains above a threshold.

Now assume Year 2 CFADS drops to 10 million, while debt service remains 12 million.

[ \text{DSCR} = \frac{10}{12} = 0.83x ]

What happens?

• debt service stress appears,
• distributions are blocked,
• lenders may ask for remedial action,
• sponsors may need to inject support or restructure debt.

Lesson: The Project Company is not just a legal shell. It is a cash-flow and covenant system.

11. Formula / Model / Methodology

There is no single formula that defines a Project Company. Instead, analysts evaluate Project Companies using project-finance and governance metrics.

11.1 Key analytical formulas

Formula Name	Formula	Meaning of Variables	Interpretation	Sample Calculation
Project Gearing	Debt / Total Project Cost	Debt = project borrowings; Total Project Cost = total funded cost	Shows how much of the project is debt-funded	84 / 120 = 70%
Debt-to-Equity Ratio	Debt / Equity	Debt = project borrowings; Equity = sponsor/investor capital	Higher ratio usually means higher financial leverage	84 / 36 = 2.33x
DSCR	CFADS / Debt Service	CFADS = cash flow available for debt service; Debt Service = principal + interest due	Measures ability to pay scheduled debt obligations	15 / 12 = 1.25x
LLCR	NPV of Loan-Life CFADS / Outstanding Senior Debt	NPV = present value of projected CFADS during loan life; Debt = current outstanding senior debt	Measures debt cover over the remaining loan life	If NPV of CFADS = 100 and debt = 80, LLCR = 1.25x

11.2 Worked LLCR example

Assume:

• present value of projected CFADS over the loan life = 100 million
• outstanding senior debt = 80 million

[ \text{LLCR} = \frac{100}{80} = 1.25x ]

Interpretation: The present value of expected cash flow over the loan life is 1.25 times the outstanding debt. Higher is usually better, but acceptable levels vary by sector and lender.

11.3 Analytical method when no formula is enough

A Project Company must also be analyzed qualitatively:

1. What asset or rights sit inside the company?
2. What contracts support cash flow?
3. Who bears construction, operating, and market risk?
4. What recourse do lenders have?
5. What restrictions apply to distributions?
6. Are sponsors providing guarantees or contingent support?
7. Can the project survive downside scenarios?

Common mistakes

• Using revenue instead of CFADS for DSCR
• Ignoring reserve account requirements
• Mixing sponsor-level debt with project-level debt
• Comparing ratios across sectors without context
• Treating contractual protections as unimportant because ratios look strong

Limitations

• Ratios can look healthy while permits, contracts, or governance remain weak.
• A model is only as good as the assumptions behind it.
• One year’s strong DSCR does not remove regulatory or counterparty risk.

12. Algorithms / Analytical Patterns / Decision Logic

Project Companies are commonly evaluated with structured decision logic rather than one single algorithm.

12.1 “Is this really a Project Company?” classification rule

What it is: A simple classification framework.

Why it matters: Many entities are called “project companies” loosely, even when the structure is not truly ring-fenced.

When to use it: During diligence, valuation, or governance review.

Decision logic:

Ask these questions:

1. Is the entity tied mainly to one defined project or asset?
2. Does it hold the key assets, rights, or contracts for that project?
3. Are the cash flows primarily project-specific?
4. Are financing and distributions controlled at the entity level?
5. Are activities restricted to the project or closely related activities?

If most answers are yes, it is functioning as a true Project Company.

Limitations: Some mature businesses begin as Project Companies but later expand beyond one project.

12.2 Lender credit assessment sequence

What it is: A practical review sequence used by lenders and analysts.

Why it matters: Credit quality depends on much more than incorporation.

When to use it: Before financing or investment.

Typical sequence:

1. legal existence and ownership
2. permits and land rights
3. concession or revenue framework
4. EPC and construction risk allocation
5. operating model and O&M capability
6. financial model and downside stress
7. reserve accounts and security package
8. covenant headroom and sponsor support

Limitations: Even a strong sequence cannot fully remove political or force majeure risk.

12.3 Distribution decision framework

What it is: A rule-based approach to decide whether cash can be distributed.

Why it matters: Many Project Companies generate cash but cannot legally or contractually upstream it.

When to use it: Treasury, board, lender monitoring, investor review.

Typical checks:

• any default or event of default?
• required reserves funded?
• upcoming debt service covered?
• major capex pending?
• covenant ratios above thresholds?
• restricted payment conditions met?

Limitations: Rules differ by financing document and law.

12.4 Governance decision framework

What it is: A matrix of who decides what.

Why it matters: Many Project Companies fail due to governance deadlock, not just weak economics.

When to use it: JV structuring and board design.

Typical areas:

• board appointment rights
• reserved matters
• budget approval
• related-party transactions
• funding obligations
• deadlock resolution
• transfer restrictions

Limitations: Governance frameworks are only effective if they are enforceable and actually followed.

13. Regulatory / Government / Policy Context

A Project Company has no single universal regulatory regime. The rules depend on the jurisdiction, sector, and financing structure. Still, several regulatory layers commonly matter.

13.1 Company law and governance

Project Companies are governed by ordinary company law in the jurisdiction of incorporation, including rules on:

• incorporation,
• directors’ duties,
• shareholder rights,
• annual filings,
• beneficial ownership reporting,
• capital maintenance where applicable.

13.2 Sector regulation and permits

If the project is in a regulated sector, the Project Company may need:

• construction approvals,
• environmental permits,
• sector-specific licenses,
• land-use permissions,
• grid or network connection approvals,
• concession compliance.

13.3 Public procurement and PPP frameworks

Where government is involved, the Project Company may be the formal counterparty under:

• concession agreements,
• PPP agreements,
• availability-based contracts,
• regulated tariff arrangements.

Public procurement, concession rules, and audit obligations may apply.

13.4 Lending and security law

Project financing commonly depends on enforceable rights over:

• shares of the Project Company,
• bank accounts,
• receivables,
• project contracts,
• movable and immovable assets,
• insurance proceeds.

Local law determines how these security interests are created, perfected, and enforced.

13.5 Accounting standards

Project Company accounting treatment depends on control, not on the name alone.

Common frameworks include:

• IFRS / Ind AS: control and consolidation principles, joint arrangements, associate accounting
• US GAAP: consolidation rules, including control and, in some cases, variable-interest analysis

Typical issues:

• Does the sponsor control the Project Company?
• Is there joint control?
• Should it be fully consolidated, proportionately presented in management discussion, or equity-accounted?

13.6 Disclosure standards

If sponsors are listed or regulated, they may need to disclose:

• guarantees,
• contingent liabilities,
• commitments to fund,
• related-party transactions,
• material subsidiaries or associates,
• debt covenants and security arrangements where material.

13.7 Taxation angle

Tax consequences vary widely and should be verified locally. Common issues include:

• interest deductibility limits
• withholding taxes
• transfer pricing
• indirect taxes on construction and services
• stamp duties or transfer taxes
• depreciation and capital allowances
• loss carryforwards

13.8 Insolvency and restructuring

A Project Company can fail. Ring-fencing helps structure risk, but insolvency law decides what happens if cash flow collapses. Lender enforcement rights, restructuring options, and insolvency outcomes vary by country.

13.9 Public policy impact

Project Companies matter in public policy because they can improve:

• accountability for infrastructure delivery,
• private capital participation