3 Departments should ensure that the capital structure of a proposed deal is consistent with the risks involved in the project. If the proportion of risk or equity capital is too low, the project will not be financially robust in the face of lower than expected revenues. Moreover, having a relatively low investment at risk may provide insufficient incentive for the private sector shareholders to tackle business problems with determination. Either way, the impact of proceeding with too little risk capital is likely to be a call on the public sector for increased financial support, as happened in this case. It follows that a department should take a close interest in the private sector's proposals as regards the capital structure of Public Private Partnerships. If the market is unwilling to subscribe sufficient equity capital it is a clear signal regarding the riskiness of the project, the implications of which need to be thought through by the department concerned.