The direct agreement of the lenders: this is a three-way agreement between the Authority, Projectco and the lenders, under which the Authority agrees to grant lenders a deadline for the early termination of the project agreement. This agreement will also provide lenders with the opportunity to intervene directly or through a candidate or representative to resolve the termination event or to find another party that is acceptable to the Authority to assume Projectco`s rights and obligations under the project agreement. 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. The awarding entity is the contracting authority that enters into the project agreement with Projectco. 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. Direct negotiations between Israel and the Palestinians (2010-2011) – Benyamin Netanyahu, Mahmoud Abbas, George J. Mitchell and Hillary Clinton at the start of direct talks on September 2, 2010. Since September 2010, direct negotiations have taken place between Israel and the Palestinian Authority,… … Wikipedia In addition to this security, project lenders generally expect direct contractual relationships with counterparties with key project documents.
This goal is achieved through direct agreements. 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.” Financing agreements: The facility agreement is the main document between lenders and Projectco and contains the terms of project financing. Lenders will also need a security package and guarantees to protect borrowed funds. The loan agreement is discussed in more detail in our separate out-law guide on key issues for lenders in project financing contracts. Equity investors: lenders or project proponents who do not expect to play an active role in the project. In the case of lenders, they will have an interest in in addition to the granting of loans as debt financing in order to obtain a higher return if the project is successful. In most cases, any equity investment is linked to an agreement allowing the equity investor to sell his shares in the project sponsor if the investor wishes to leave the project. Similarly, the sponsor of the project may have the opportunity to buy back the shares.