FairFund Ireland will accept Concession Funding Applications on behalf of the Federation from members who wish to be sponsors for project development. A successful applicant will receive a Temporary Concession Licence issued by the Federation granting permission to FairFund Ireland to establish a Special Purpose Vehicle (SPV) for the delivery of a turnkey project. This concession will permit FairFund Ireland a moratorium of five years to use capital it has raised to fund the SPV. A precondition for the granting of such a licence is that the capital raised will be paid to the Federation at 5 years (max 7 years) for the RMRT.
Such application will be supported by a verifiable project summary including an anticipated budget of all project funding required to design, build and deliver the project with an acceptable exit to repay all funds advanced. FairFund Ireland will submit the application to its project administration partners for assessment and risk analysis. All of the risks covered by the RMRT will be considered to be already covered. The risk analysis will concentrate on the ability of the developer to complete the contract on a professional basis and on the ability to re-finance the project on completion.
The project developer will agree terms and conditions to appoint professional administrators to manage the SPV holding the project in trust while managing the funding of the development (Not as project managers)
On granting the Concession Licence FairFund Ireland will have made all necessary arrangements with its services providers, so that the capital required, in line with the agreed budget, for the design, build and delivery of the project, its related costs and charges, will be held to the call of the SPV on a just in time basis. This arrangement also includes the ability to issue Letters of Credit to suppliers and contractors, therefore attracting major discounts.
On completion of the project the developer is obligated under contract to sell the development as a going concern or refinance it by traditional long term funding with the credit institutions within the beneficiary jurisdiction of the project. On transfer of the project to the beneficial owners, being public or private sector, the total value advanced through the SPV funding over the development period must be repaid to a RMRT account set up in the beneficiary jurisdiction. In those countries, where the Federation has targeted economic investment, growth and stability, the repaid amount shall be in local currency and shall remain in the banks of that jurisdiction to underwrite the long term funding by those banks in line with the cover offered through the RMRT and to fund further enterprise and development projects.
In certain instances where the project is health, education and / or humanitarian relief the Federation may hold the project in trust through local trustees appointed by the Federation. In such instance there will be no requirement to repay the RMRT, and ongoing funding will be made available to create continuity and excellence.