Revenue guarantee

Although it is the intention of the Government to identify financially robust projects, it is possible that some of the projects could have a level of risk that is unacceptable to the private sector. Greenfield projects often fall into this category. For high-risk projects, the Government can provide revenue guarantees. Under the PPI Act, the Government can guarantee up to 90 per cent of the projected revenues for solicited projects and 80 per cent of the projected revenues for unsolicited projects. Where these guarantees are provided, the Government also limits the maximum amount of revenues that the project developer can retain. However, this amount would be a minimum of 110 per cent of the projected revenues for solicited projects and a minimum of 120 per cent of the projected revenues for unsolicited projects.