Page 17 - U4SSC Compendium of practices on innovative financing for smart sustainable cities projects

in its management during project implementation. There are three payback scenarios (payment
terms) under consideration:

i 18 years – USD 19 million per year;

ii 24 years – USD 15.5 million per year;
iii 35 years – USD 12.8 million per year.

The money for the payback will be generated through availability payments – payments by the
government to the investor once the project is completed (around 80 per cent) – and through
revenue that will be generated from the accommodation of students and teachers and utilization
of other facilities on the campus (around 20 per cent).

Observations

• The project has the potential to be replicated in other regions; the combination of a university
campus and new urban area prevents overcrowding in existing cities and creates new
opportunities for jobs.

• Implementing the PPPP project faced some challenges due to the lack of preparation by local
authorities for institutional and financial innovations. There is limited experience with PPPs in
the country and changing existing regulations and work habits was difficult.
• A lack of experience with PPPs can be addressed through the international sharing of experiences
on implementing institutional and financial innovation, training on PPPs and other financing
mechanisms, and work discussions between private businesses and public authorities.

Compendium of practices on innovative financing for SSC projects | January 2023 5