PROJECT DELIVERY METHODS

The project delivery method is a determining factor in the development and financing of a biogas upgrading project. Project delivery methods can vary depending on the nature of the project or the legal structure chosen.

 

A 100% private model is often a given for most agricultural or industrial projects. This is not the case in municipal projects; determining an appropriate delivery model is therefore a crucial preliminary step for these projects. Models can vary depending on the respective degree of equity participation of the public and private sectors as well as asset management. Delivery methods range from traditional (or conventional) to full privatization, with a whole range of alternative project delivery methods in between.

GNR QUÉBEC CAPITAL can be involved in all project delivery methods involving a private equity stake. GNR QUÉBEC CAPITAL invests in long-term partnerships with public or private developers and can advise them on various project development and financing methods.

Here are the key project delivery methods found in municipal projects.

The various delivery methods, which extend to full privatization, are known under the following designations:

DB

Design-Build

The private partner is responsible for the quotes, plans and construction of the facilities, carried out through a turnkey contract (fixed dates and amount).

DBOM

Design-Build-Operate-Maintain

The private partner is responsible for the design and construction of the facilities. It also operates and maintains the facilities under a long-term agreement.

MEC

Mixed Enterprise Company

The creation of an MEC brings together private companies and public bodies (local municipalities or RCMs) for a specific project. The municipal body must have a majority, but the MEC is nevertheless still considered a company under private law.

 

DBF

Design-Build-Finance

The private partner is responsible for the design, construction and financing of the facilities until delivery.

DBFOM

Design-Build-Finance-Operate-Maintain

The private partner is responsible for the design, construction and financing of the facilities. It also operates and maintains the facilities under a long-term agreement.

BOT or BOOT

Build-Own-Transfer or Build-Own-Operate-Transfer

The private partner takes care of the construction and financing of the facilities. They then own and operate the facilities to recoup the investment costs and a predetermined profit margin until the contract expires, at which point the facilities are transferred to the public authority.

 

Delivery Method Schema1

Here are the main stakeholders of a typical project:

 

Delivery Method Schema

Discover the different projects targeted