Switzerland - Project FinancingSwitzerland-Project-Financing
Transportation projects are mostly financed through public funds in Switzerland, but other large-scale projects in areas like real estate and energy are usually financed through special purpose vehicles using both debt and equity. Special purpose vehicles are separate legal entities that act as off-balance subsidiaries of companies created for the purpose of financing a project. Prior to investing in a project, authorizations, licenses or concessions may be required based on the investment in question. These are then granted by the appropriate federal or cantonal authority. Foreign investment may be restricted in sectors controlled by public monopolies such as transportation or water supply.
Generally speaking, there is no special financing offered by the government for projects in Switzerland. The federal government may grant long-term loans at preferential interest rates for a limited category of projects in designated regions, primarily in remote, mountainous areas, that are threatened with economic decline. Cantonal and communal governments offer a wider variety of incentives, including financing, for investment projects in their respective areas. Most cantons maintain economic development agencies, some with offices or representatives abroad, for the purpose of attracting projects and investments.