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one. Fastened or variable source: the supplier agrees to deliver a hard and fast quantity of materials to the project enterprise on an agreed plan, or possibly a variable offer in between an agreed optimum and least. The supply might be underneath a acquire-or-shell out or acquire-and-fork out.
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The applicable purchase agreements amongst The federal government organizations along with the project might consist of clauses guaranteeing a minimum amount offtake and thereby guarantee a specific degree of revenues. In other sectors which include road transportation, The federal government may perhaps toll the roadways and accumulate the revenues, though furnishing a assured once-a-year sum (together with clearly specified upside and downside disorders) for the project. This serves to minimise or do away with the threats connected to site visitors demand from customers for that project buyers as well as lenders.
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