DBF (Design-Build-Finance)

As in a Design-Build (DB) contract, the private sector designs and constructs the new facility, but it will be paid through a long-term stream of payments, usually after commissioning (irrevocable and unconditional) rather than as work progresses. This means that the contractor has to finance the cost of the works, acting as lender or lessor to the public party (usually a bank that provides the financing against a pledge based on the future government payments). Operation and maintenance is provided by the government or is outsourced to a separate agency.


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