Government guarantees and stand-by financing: In some cases, government provides indirect guarantees and stand-by financing to advance the project. It includes:

• Indirect guarantee of operating income and stand-by loans: Government providing guaranteed minimum income from traffic tolls and government ready to extend loans for servicing senior debt project cash flow is insufficient owing to force majeure events.
  
• Protection against the loss of expected revenues due to competing projects .
  
• Guarantee of commercial freedom, i.e. Right to determine its tariffs , tolls etc.
  
• Currency exchange protection.
  
•   Interest rate reimbursement during period of high inflation and reimburse if interest rate crosses stipulated percentage during project period.
  
• Protection against uninsurable force majeure events by either providing contract period extension or bearing the economic effects of uninsurable force majeure events exceeding equity investment.

Loans and equity contributions: Direct equity investment from the governments or by their agencies or local authorities has been adopted in some PPP projects. Such participation in project equity may have the advantage of assuring government involvement in the project and providing support for implementation and operation of the project. It may also help to strengthen the government's monitoring of the projects.

Completion and performance incentives: Incentives to motivate the project company to meet the obligations and achieve, if possible, higher level of performance than forecast should be structured in PPP projects. One way to achieve these objectives is to include bonus arrangement in the project agreements, wherein bonus is given to Project Company based on the degree to which Project Company exceeds projections. The following bonus incentives, which can be lump sum or percentage payments, could be included in the bonus arrangement of PPP projects:

• Signature bonus : Lump sum amount payable if project agreement is signed by a stipulated date.
  
• Completion bonus : Sum payable if construction of project facility is completed before the stipulated date in the project agreement.
  
• Performance bonus : Amount payable if the output of the project exceeds stipulated performance level.