Because of the long-term nature of infrastructure, the sustainability of financing over the long term must also be considered. This does not necessarily mean that the only possible approach is to have finance in place for the full term of the asset or contract-such an approach may be practically impossible or not the most appropriate or efficient. Rather what is needed is a determination of the threats to and consequences of changes to the financing during the asset or contract life.
For example, are there known refinancing events, and if so, where do the risks of failing to complete such a financing lie? Table 1 presents a summary of issues that might be relevant here.
Governments must look at the robustness of the refinanced structure or whether the refinance has been an opportunity to extract material profits. They should also determine if they have an obligation to maintain financing, and in the event of failure, if the government will become the lender of last resort.