Vestronis
/PPP & Investment

Structured infrastructure for long-term capital

Vestronis structures infrastructure investment through public-private partnership and concession frameworks. We combine technical origination, legal structuring and capital alignment into one integrated process. This page sets out the models we use, how projects are financed and the principles behind our investment approach, for public authorities, institutional investors and lenders.

Delivery models

Six structures we apply

We select and design the delivery model for each project based on its risk profile, revenue structure and institutional requirements. The model is a means, not an end.

DBFOM
Design, build, finance, operate, maintain
Typical term 20–35 years · environmental, water, social, transport
The private partner is responsible for the full lifecycle under a long-term concession. Revenue comes from availability payments or user fees.
DBFM
Design, build, finance, maintain
Typical term 25–30 years · hospitals, schools, civic buildings
The private partner finances, builds and maintains the asset. The authority keeps operational responsibility.
AP-PPP
Availability-payment concession
Stable cash flows · social, road maintenance, digital
A unitary charge is paid for keeping the asset available to specification. Demand risk stays with the authority.
TC
Toll / user-fee concession
Demand risk private · transport, logistics, environmental
The private partner collects user revenues and bears demand risk. Viability-gap funding is added where appropriate.
BF-PPP
Blended-finance PPP
Grant + commercial capital · remediation, water, rural
Grant funding is combined with project-finance equity and debt where public benefit justifies the subsidy.
JV / LC
Joint venture / land concession
Shared governance · industrial parks, SEZs, logistics
The public partner contributes land or rights, and the private partner brings capital, capability and management.
Project finance

How infrastructure gets financed

Project finance secures debt against the cash flows of a ring-fenced project company rather than a sponsor's balance sheet. Lenders assess contracted revenues, risk allocation, technical bankability and sponsor strength. We structure each project to meet project-finance lender requirements, from concession design through to the financial model, documentation and conditions precedent.

  • Cash-flow modelling: base case, sensitivities and downside, with an independent model audit
  • DSCR and LLCR analysis aligned with lender requirements
  • Revenue bankability: contracted offtake, availability-payment covenant, tariff regulation
  • Allocation of construction, operating, demand, regulatory and force-majeure risk
  • Security package: direct agreements, step-in rights, accounts and insurance
  • Managing conditions precedent: legal opinions, permits, E&S clearances, insurance
SPV architecture

The project-company contract structure

Each project is delivered through a special purpose vehicle (SPV) that holds the concession, receives revenues, services debt and owns or operates the assets. The SPV keeps project risk separate from the balance sheets of all participants.

01
Concession agreement
Between the SPV and the contracting authority. It defines the service, payment mechanism, KPIs and termination provisions.
02
Shareholder agreement
Among equity investors. It covers governance, reserved matters, distributions, transfer restrictions and pre-emption.
03
Senior financing agreements
With IFI and commercial lenders. They cover amount, tenor, pricing, security, covenants and enforcement.
04
EPC contract
Fixed-price, date-certain construction, with liquidated damages for delay and defects.
05
O&M agreement
Long-term operation and maintenance with KPI-linked payments and performance deductions.
06
Direct agreements
Between the authority, SPV and lenders, giving lenders step-in rights if the SPV defaults.
Capital stack

Structuring the financing

Each layer of the capital stack has different risk and return requirements. We design the stack project by project.

GRT
EU grants & WBIF
Blended
Non-repayable co-financing that reduces the overall financing need where the project is eligible.
SNR
Senior debt
Majority
IFI loans, commercial banks and ECAs. First-ranking security, typically 15–25 year tenor, sized on DSCR.
MEZ
Mezzanine / subordinated
Optional
IFI or DFI subordinated tranches that bridge the gap between senior-debt and equity requirements.
EQ
Equity
Minority
Sponsor and co-investor equity and infrastructure funds, taking residual cash flow after debt service.
Illustrative ranges only. Actual structures vary by sector, size, revenue model and market conditions. This is not investment advice.
Development finance

IFI and DFI instruments relevant to the region

These are the instruments we assess when structuring projects in our markets. Being listed here does not mean an institution has committed to, or is engaged on, any Vestronis project.

EBRD
European Bank for Reconstruction and Development
Project-finance loans, equity, subordinated debt and municipal and green-economy facilities.
EIB
European Investment Bank
Long-tenor project finance, and InvestEU guarantee instruments through the EIB Group.
WBIF
Western Balkans Investment Framework
Grant co-financing for priority infrastructure, blended with IFI loans.
IFC
IFC / World Bank Group
Project finance and equity for private infrastructure, and PPP transaction advisory services.
DFI
Bilateral DFIs & export credit
Bilateral concessional and grant instruments, and ECA cover for equipment supply.
Investment principles

How Vestronis invests

S-01
Originate, don't react
We develop mandates from the need upward rather than only responding to published tenders.
S-02
Aligned participation
Where appropriate, Vestronis takes a participation in the project company alongside co-investors, aligning its interests with theirs.
S-03
IFI-ready from day one
Projects are structured for IFI co-financing eligibility from origination.
S-04
Sector focus, regional depth
Twelve sector platforms anchored in the Western Balkans and extending to EU accession and emerging markets.
S-05
Long-term governance
We intend to stay involved in governance through operations, not to develop and exit.
S-06
ESG-integrated
ESG requirements are built into structuring rather than added at close.
Confidential engagement

How investors and lenders engage

1
Enquiry
Tell us about your mandate, criteria and areas of interest.
2
Introductory discussion
An initial conversation with our investor-relations team.
3
Confidentiality
A confidentiality undertaking before any project-specific information is shared.
4
Data-room access
Invitation-only access to project materials, with Q&A and version control.
Information on this website is general. It is not an offer or solicitation to invest in any security, fund or project. Any investment activity is subject to separate documentation and applicable regulation.

Partner with Vestronis

Whether you represent a public authority, an investor or lender, or a technical partner, tell us about the opportunity and we will route it to the right team.