An example is the recently completed financing for the construction of a new parking garage at Oshawa General Hospital through securitization of projected future parking revenues. Look beyond the pure financing solution. Whether you are looking to finance a new hospital wing, a major piece of equipment or the construction of a parking garage, your financing partner should be able to add value beyond the ability to raise funds. A partner that brings expertise from the supplier side of the transaction through relationships with manufacturers and construction companies can make the difference in getting the most out of a public-private partnership. Such partnerships generally lead to efficiencies for the client and often result in a lower total cost.
Flexibility is critical.
Look for flexibility in the structure of the financing and the revenue sources. Similarly, for many projects up-front costs lead to operating savings later on. Financing solutions can be tailored so that repayment is tied directly to savings or future revenues and interest is accrued during the initial construction and ramp-up period, and paid down over the life of the project. Keep total and future borrowing requirements in mind. For a major construction project consider one financing institution at the outset, to meet the funding needs for both the construction and long-term financing phases of the project.