Highways Agency - Safe roads, Reliable journeys, Informed travellers

DBFO Contract Period

The DBFO contract period is for 30 years from the commencement date. The period was selected because finance for this type of project generally has a maximum repayment period of around 20 years and the payment mechanisms had to be structured to allow repayment of debt over a similar timescale (making allowance for a reduced payment stream in the initial years until the road scheme(s) are completed and a 'buffer' period after anticipated debt repayment in the event that cash flows are less than, or come on stream later than, anticipated). Since 30 years is currently beyond the range of conventional debt, the choice of period also encouraged financial innovation, use of alternative sources of funding and the possibility of re-financing after the completion of construction, all of which can provide financial benefits to the Agency. It was also important that the contract period was sufficiently long to allow DBFO Co to apply whole-life costing to the project road.