The need for capital expenditure over the life of a User project may not be clear at commencement of the project. Therefore, the project arrangements must be flexible to allow the project company to manage the circumstances encountered on site, rather than being bound to a strict scope of works to be built or improvements to be made. The obligations placed on the project company will more likely reflect general obligations, e.g. to improve the quality of services delivered, reduce losses/leakage and improve cost recover through tariffs. This may necessitate the project company agreeing with the grantor on rolling programs for capital investment against an investment program or budget based on the amount of income obtained by the project company or as required to satisfy the performance criteria placed on the project company. The permitted level of tariffs charged to consumers is also likely to have an important impact on the value and nature of capital works undertaken by the project company. This means that the project company may only be committed to mobilize financing at bid stage for the first works program.