A special Purpose/Project Vehicle (SPV) is a legal entity that conducts a project. All contractual agreements between the different parties are negotiated between them and the VPS. An SPV is a trading company established under the corresponding law of a country through an agreement (also known as a memorandum of association) between shareholders or sponsors. The shareholders` agreement defines the basis for the incorporation of a company and contains information such as the name, ownership structure, management control and social affairs, the authorized share capital and the extent of the commitments of its members. The SPV concludes the project agreement, obtains financing from investors and contracts with the construction and O&M contractors. The consortium will be aware of its key role during the tendering phase and training within the VPS. This results in a considerable responsibility for the consortium to ensure that the PPP project is structured in a robust manner that protects its interests. This PPP guide is based on a project financing approach. Typically, this means that the consortium will create a special purpose vehicle known as the Ad Hoc Vehicle for the implementation of the PPP project. The consortium would not normally accept an unregistered joint venture or partnership structure. An ad hoc vehicle (APV) is a separate legal entity created by an organization.

SPV is a separate entity with its own assetsAs of asset typesDeasive types of assets include short-term, long-term, physical, intangible, operational and non-operational assets. Correct identification and liabilitiesOne of the liabilities is a financial commitment of a company that results in the company sacrificing economic benefits for other companies or companies in the future. A liability can be an alternative to equity as a source of funding for a company and its own legal status. Normally, they are created for a specific purpose, often to isolate financial risks. Since it is a separate legal person, the bankruptcy of the commercial bank is the legal status of a human or non-human entity (company or governmental authority) that is unable to repay its debts to creditors. The SPV is set up for a single purpose: to design, finance, build and operate the project. Due to the number of activities it carries out, the VPS is probably the main actor in the PPP project. The VPS is usually set up shortly before the conclusion of the project agreement with the public procurement authority, i.e. at the time of financial closure. The members of the consortium will usually be the shareholders of the SPV, as well as other shareholders, such as.B investors. [5] However, not all members of the consortium will want to be shareholders of SPV. For example, a promoter may decide that it does not wish to be a shareholder of the SPV.

Instead, it will decide to be part of the proposal as a designated contractor. [6] It may wish to focus its full attention on construction activities instead of participating in all aspects of the implementation of the Ppp, as desired by the members of the SPV. There is often a direct link between one of the shareholders of the SPV and the construction and/or O&M contractors. . . .