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Any feature of a loan facility that allows lenders to keep money in the VPS instead of releasing it as a distribution to project proponents. An example would be a distribution blocking ratio. Money traps are perceived negatively by sponsors – who therefore tend to negotiate them fiercely – . Commercial contracts and other project-related agreements in which lenders are NOT involved and which are marked as „project documents” in credit and security agreements. Once a document has been classified as such, it is affected by the provisions of the loan documents, including. For most practical purposes in project financing, an EPC contract is the same as a fixed-price turnkey contract (FPTK). An EPC contract generally provides for the contractor`s obligation to sell the project facilities at a fixed, turnkey, fixed price, i.e. at a specific price. A follower of the principles of the equator.

As of February 2019, 94 acquiring financial institutions in 37 countries had formally adopted the Equator Principles, which represent the majority of international project finance providers in emerging and developed countries. The payment of interest due and repayments under a project loan facility or a reserve-based loan facility. In contract law, the term „standard language” or „boilerplate clause” describes the parts of a contract that are considered standard. In negotiations, the phrase „it`s a boilerplate” can be used to mean that a clause is simply required and therefore non-negotiable, does not need to be negotiated or not. Total contract price of $345 million – cash raised to date of $105 million = $240 million remaining. A fixed amount of damages to be paid to the project company/SPV – usually by a construction or operation and maintenance contractor – due to the contractor`s failure to comply with contractual obligations. In the case of a contractor, these are usually self-timers and/or performance LDs. An agreement between the primary creditors of a project borrower that governs the relationship between those lenders with respect to the borrower`s obligations. As a rule, such an agreement contains provisions relating to matters such as: General Terms and Conditions Cascade Drawing Order of Cash Flow Limitation of the ability of creditors to use them. A due diligence consultant who typically works on behalf of lenders in connection with a project finance transaction. Also known as an independent engineer. ITC`s fees are the responsibility of the borrower.

The scope of ITC`s work can only cover the period up to financial close, although lenders. A financial instrument (usually issued by a bank) issued to a party that may require payment of that instrument if, for any reason, the beneficiary is not paid under this contract. The issuing bank must after receiving a . What are the REMAINING CAC estimated construction costs for the project at the end of 2016? Compensation paid by a contractor as compensation for the late completion of a project built under the terms of a fixed turnkey price or an engineering and construction procurement contract. Damages are usually calculated as an amount per day, per week or per month of delay on the. The relationship between equity and project funding liabilities within the financing structure. Usually given as Debt: Equity – so „80:20 gearing” means 80% debt and 20% equity. This ratio is also known as the „leverage” of the project.

A mechanism used in project finance debt structures where projected revenues and cash flows are inherently unpredictable. After the planned debt service and the necessary transfers to the reserve accounts, some or all of the remaining cash flows are available for debt service – which is usually distributed to the project proponents. Sometimes called a company. A covenant is a solemn promise to commit or refrain from a particular action. An agreement is a type of agreement that corresponds to a contractual condition. The Covenantor makes a promise to a Covenanter to make (affirmative alliance (US) / positive alliance (English law)) or. If a contractor`s bid for a construction project is successful, it will be released from its obligations under its bid bond once it has submitted a performance guarantee as security for the completion of the work. If the contractor does not complete the project according to the specifications of. An agreement requiring an SPV project not to pay distributions unless a pre-agreed coverage ratio is met. Typically, distributions are only allowed if three conditions are met: No pending failure events; Debt service reserve account, fully funded when required; Test of the locking report of the satisfied dispenser.

A contractual agreement for the sale of physical goods or other assets to a buyer – most often in the area of financing LNG-related projects. PPS is the common method for the long-term sale of LNG and often includes arrangements for taking or payment. How much money does CCC still have to raise for the project? In a project-financed structure, promoters are generally not required to provide additional financial support to the VPS once they have contributed their core capital […].