For individual projects, improved financing terms may be available once construction is complete and the service delivery phase has commenced satisfactorily. This is because the terms of finance offered by lenders are related to the level of the project's risks. Once the service is operational and the initial design, construction and implementation risks have been dealt with, lenders may be prepared to improve the terms of the original debt financing, resulting in a refinancing gain.
However, this is not a possibility in every PPP project. Many projects have been financed so as to incorporate a lower risk margin in the service delivery phase. In this case the initial debt arrangements for a project may already distinguish between the construction phase and service delivery phase, with associated differences in pricing.