Project agreement: the main agreement for each PFI project, the project agreement governs the relationship, rights and obligations between the Authority and Projectco for the duration of the project. It can also be called a concession agreement. Guarantees: Lenders and the Authority generally require contractual guarantees from major contractors and consultants appointed by Projectco. The value of the guarantees, in particular to the Authority, is that they protect the Authority`s position after the end of the project when the losses incurred by the Authority exceed the value of the project built (or partially built). Construction contract: Projectco will enter into the construction contract with the contractor under which Projectco`s construction obligations from the project contract will be transferred to the contractor. Among the types of projects for which project financing is often used are: linked, twice to be paid or what – Are minority union members obliged to pay a boutique agency contract fee in addition to the subscription fee? The designated representative may withdraw from termination. This occurs either when a permanent replacement is found, the project is returned to the project company, or the lenders decide that the project cannot be saved. Here, too, it is possible to discuss the extent of the designated representative`s liability for unfulfilled obligations. Partial contracts: Projectco has contracted several subcontractors to cushion the risks it takes under the project agreement. It is customary for Projectco not to perform any of the most important activities, but rather to be a vehicle for the design of project contracts – hence the term “assignment vehicle.” A direct agreement is an agreement that gives the project`s funders direct rights to some of the project`s important documents.
These rights are explained in direct agreements in project financing operations – turnkey provisions. If the counterparty agrees not to terminate the project document for a certain period of time, lenders must decide whether or not to intervene during that period. The type of structure used depends on the type of installation included in the project and the person in charge of the operation once the construction phase is complete. Another subject that can be the subject of intense debate is the length of the entry period. From the lenders` point of view, this is ideally not limited. For this reason, the argument that the third party should not be concerned about the length of the intervention period is that the designated agent fulfills the obligations of the project company at this stage of the proceedings. It should be remembered that this is the period during which lenders must save the project and/or find a permanent replacement for the project company. Wouldn`t the end of the CPR contracting services extend the project`s completion time, given that a new CPR contractor is intended to replace the previous one? lenders: commercial banks, investment banks or other institutional investors who provide the share of debt in project financing. The magnitude of typical project financing means that most loans cannot be granted by a single lender. Instead, lenders form a union.
Host Government/adjudicating authority: the government of the country where the project is based will likely be involved in granting authorisations and authorisations, both at the beginning and for the duration of a project.