Industry Insights
Project Finance: Contracts
The contractual structure gives you an excellent framework to build up your knowledge of a new project from and you’ll find common elements within them all. In this series of Industry Insights we have interviews explaining the contractual structures of typical PPP and Prower Projects. It’s really interesting to see similarities in the structures of these projects which at first glance seem so different, but the beauty of Project Finance is that it can be applied in many different areas.
Liam Cowell, Partner, DLA PiperIn the 3rd part of Liam’s overview of Project Finance contracts, he explains why the parties prefer to avoid an early termination scenario, the various termination scenarios possible including authority and project company termination scenarios, what happens if the project becomes uninsurable or if there is a force majeure event, what compensation the parties will receive under those termination scenario and how the direct agreements allow the senior lenders to avoid a termination scenario.
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Liam Cowell, Partner, DLA PiperThis video will give you an in-depth understanding of how the key risks associated with construction and operations are passed down to subcontractors, what the key construction risks are and the mechanisms used to protect the SPV, what liquidated damages are for and how operational risks relating to the availability of the asset, performance of services and volume related payments are passed to the operational subcontractor.
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Mark Somerset, VP and General Manager, UK and the Netherlands, InterGenIn this episode Mark explains how a power project gets developed and built and how the modeller fits within that process. He also outlines, what the contractual structure of a Power Project looks like, what Power Purchase Agreements are and how they can tie in with a Fuel Supply Agreement, what makes a good EPC in an IPP project and the difference between an OEM and an Architect Engineer (and what all these TLAs actually mean!).
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Liam Cowell, Partner DLA Piper, DLA PiperIn this interview, Liam gives you an overview of the parties involved in a typical PPP / Project Finance Structure, including the procuring body, SPV, funder, equity investor and key subcontractors. He describes the contracts that link the parties together including the Project Agreement, Loan Agreement, Equity documents, Construction, Operating Contracts and Management Services Agreements and finally the Interface and Direct Agreements
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