Financing
Financing model
The financing of the project is realized through a so called Project Finance Initiative (PFI). This relates to the way risks are structured in the Special Purpose Company (SPC) Delfluent and the financing agencies in the project are secured.
At the same time that the contract negotiations between the Delfland Water Board and Delfluent were held, negotiations with the financing agencies of the project were held as well. These financing agencies were Rabobank and Dexia (commercial banks) and the European Investment Bank (EIB). Upon the formation of the syndicate in the first half of 2004 eight more banks joined the project.
Total amount
In total an amount of € 362,5 million was required which was financed as follows:
• Main Loan of € 166,4M
• EIB Guarantee Facility of € 132,5M
• Junior Funds Bridge Facility of € 43,6M
• Standby Facilities of € 20M
By making use of financial instruments all financing risks for the project have been eliminated.
The service fee comprises a fixed and a variable component. The fixed component mainly consists of financing costs and the variable component is a compensation for flows and treated pollutants, based on agreed tariffs.
Best water deal 2003 and PPP award 2011
The financing structure of the project include a number of novelties, for which Delfluent received inLondonin 2003 the price for European water deal of the year. In 2011 Delfluent was awarded the second price in a contest for the best PPP contracts.
Restructuring of the finance
In order to reduce contract costs, a restructuring of the finance on of HHDelfland has taken effect per 15 June 2016. By attracting external financing, HHDelfland was able to pay an advance on future service fees to Delfluent. This was used by Delfluent to pay off all its external loans in full. The current financing that remains for Delfluent is the 43.6M Junior Funds Bridge Facility.