Our study found only six examples in which insolvency of Project Company has occurred, spread across a number of regions and including the Perpignan Figueras Rail Link between France and Spain. In all instances, the Project Company was exposed to revenue risk and the projects were either in transport or energy generation.

Our study shows 13 projects in which insolvency by either the construction or operations contractor or a major supplier to the Project Company has occurred. This includes seven examples of construction contractor insolvency, in the Netherlands, Germany, South Africa and Brazil, and Mexico.

Insolvency of construction contractors occurred on both availability based and demand based PPPs. Two equipment suppliers on UK waste projects went insolvent. In one case, the insolvency of the construction contractor was coupled with the insolvency of the Project Company, which eventually led to project termination.

There was one example of the insolvency of an equity investor. In case of the Port of Miami Tunnel Case Study, Babcock Brown (as equity investor) collapsed in the Global Financial Crisis in 2008, but was replaced with Meridiam (an infrastructure fund) before financial close.