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Design Build Finance Operate Maintain (DBFOM) Availability Payment Concessions

With availability payment DBFOM concessions, the public agency pays the P3 developer throughout the concession period for making the facility available to users. Payments may be reduced if the private partner does not meet operational performance standards such as lane closures, incident management, or snow removal. These transactions often include construction “milestone” payments to defray the amount of the ongoing availability payment.

Tolls or No Tolls

An availability payment concession is the norm for non-toll projects, but it can also be used in conjunction with tolls, where the public agency wants to retain control over toll rates and is willing to accept the revenue risk. A public agency that already operates a network of toll facilities might even choose to retain the “O” and negotiate a DBFM concession agreement.


Design Build Finance Operate Maintain (DBFOM) Availability Payment Concessions:

* Design-build-finance-maintain

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