The private sector is responsible for obtaining finance for the project. Beyond ensuring that the project company has available finance for the life of the project, the cost and how the private sector obtains this finance is likely to be of minimal concern to the government.
The lender, however, is likely to be very interested in the terms of the project company's concession agreement with the government. Almost invariably, lenders would require a step-in right in relation to the infrastructure facility. This is something that needs to be discussed between the government and the lender (despite the fact that the two parties rarely deal directly with each other but negotiate through the project company).
The government does not need to be concerned with the terms of the intercreditor agreement except if it is a party to such agreement. As a general rule, the government should resist becoming a party to such an intercreditor agreement because the government's interests in the project company tends to be different from that of the lenders, even if it provides finance to the project company in the same way as the lenders. If it needs to be a party to such an intercreditor agreement, then it should ensure that any undertakings do not unjustifiably limit the ability of the government to exercise its rights. For example, an intercreditor agreement usually contains a clause by all the creditors agreeing not to take legal action against the project company unless certain things happen (for example all the creditors at a meeting agree to take legal action against the project company). The intercreditor agreement needs to be clear that such a negative undertaking would not apply to the government taking action against the project company for breaches that arise independently of the default under a credit agreement, for example, any breaches of the concession agreement.