An IEPC (International Energy Performance Contract) is a form of creative financing for capital improvement which allows funding energy upgrades from cost reductions. Under this IEPC arrangement Shanshui implements a project to deliver energy efficient LED street lighting and uses the stream of income from the energy cost savings to repay the costs of the project, including the costs of the investment. Essentially Shanshui will not receive its payment unless the project delivers energy savings as expected.
This approach transfers all financial risks and burdens from your government to Shanshui.
This approach transfers all financial risks and burdens from your government to Shanshui.