Debt and/or equity structures can be created to only draw down or be paid in after certain circumstances have arisen, in a specified timeframe and/or when requested by specified persons. These structures are known as standby, contingent or callable capital. This contingent capital (often subordinated debt) can be used to address challenges that may arise, for example
• construction cost over-runs-e.g. to address underestimates in construction costs due to information provided by the Government, or where certain construction risks are to be borne by the Government
• revenue shortfalls, e.g. where revenues do not meet forecasts, for example during ramp-up, or where traffic does not meet expectations
• exchange rate shifts, requiring revenue support, e.g. to meet debt service obligations.