Design, Build, Finance, Operate & maintenance (DBFO)

Our expertise ranges from the construction, financing, operation and maintenance of drinking water production plants, wastewater treatment plants and waste recycling and recovery facilities. This type of collaboration allows you to obtain full or partial financing for your work to build a new plant or optimize an existing one. We structure the financing of 100% or part of the investments.
Your challenges

Obtain financing to build or optimize a treatment infrastructure

You are convinced with all the benefits of combining Construction & Operation (Design Build Operate model) but:

  • You are reluctant to finance, on your own budget, the capital investment (Capex); this can be for various reasons:
    - You prefer to allocate your financing capabilities to serve projects that are more in your core business
    - You do not want to increase, or need to decrease, your debt levels & ratios…
  • You need to secure an affordable and predictable tariff/fee for the services that the asset is meant to deliver; tariff/fee is meant to cover
    - Fixed component for amortization and financing costs of the asset (new or expansion) + fixed O&M costs (manpower, asset maintenance, …)
    - Variable component for variable O&M costs (energy, chemicals, …).
Our solutions

Total or partial financing

1. Full financing

We structure the financing of 100% of the Capex, usually with a “project finance” scheme, as follows:

  • Special purpose company (SPC) created for the project
  • We provide for SPC’s equity, along with other partner investors
  • Equity shareholders secure a long-term debt, usually from a pool of lenders and on a non-recourse basis

2. Partial financing

We structure the financing for a portion of the Capex (still with “project finance” scheme), the remaining portion being financed by a third party, usually provided by you (typically, an International Financing Institution or a Grant provider)

The main benefits of Design, Build, Finance & Operate solution over Design, Build & Operate solution:

  • Capex financing is no longer on your balance sheet
  • You have a predictable tariff/fee in your budget to pay for the services rendered by the asset

Your main requirements for engaging into a Design, Build, Finance & Operate (DBFO) contract:

  • Capacity building: the DBFO is an elaborated collaboration model which requires that you staff well qualified team
  • Governance stability: DBFO requires long-term (typically, from 20 to 30 years) in order to optimize the tariff, which requires stability in the governance of your authority
  • Stakeholders management: DBFO involves several stakeholders (commercial lenders, international financing institutions or donors, regulatory agencies, non-governmental organizations, …) who need to be managed in good faith and persistently

In a Design, Build, Finance & Operate for a desalination plant, the cost of power to operate the treatment line can represented 50% of the water tariff, which confirms that over the full lifecycle of an asset, Operation & Maintenance costs are frequently the major component.

Our references

They trust us

We have dozens of references of water & waste treatment facilities delivered through Design, Build, Finance & Operate contracts (with full or partial financing of the Capex).