Model Assumptions

The PPP Project Team must detail all the assumptions of the model, which will be derived following consultations with the Government Entity and other related Stakeholders. These would include:

  Financing assumptions (Target debt/equity ratio, target debt service cover ratio, tenor of loan, interest rate, target equity IRR, unitary charge indexation percentage, working capital days, etc.);

  Estimation of land value;

  Underlying base costs (Site development, design, construction - including raw materials, plants and equipment, labour, and site management costs - internal fit out and external works of landscaping costs, facility development, SPV costs, administrative costs; facilities management, labour costs, major maintenance costs, etc.); and,

  Discount rate.