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Comprehensive Corefait, COREFAIT EU Funding Gap Model Description Below
The method used to consider net revenue when calculating eligible expenditure for the contribution from the Funds is the method of the funding-gap defined as the difference between discounted investment cost and discounted net revenue. This method is used for two main reasons: first, to ensure that under certain circumstances, projects have enough resources to be implemented without being over-financed; and second, by extension, to ensure a minimum level of project profitability so that beneficiaries can bear the cost of capital needed in addition to public support.