Project Finance – A User's Guide To Documentation

The project financing transactions are voluminous and complex. The documents can be broadly categorized as (a) Project documents (the documents for design, construction, operation and maintenance of a project); and (b) Financing documents (the documents for financing and securing a project).

Project Documents

These are the incorporation documents of the project company and its sponsors, the investment agreement (for equity investment by the sponsors, its timing and form), project management agreement (agreement for management of the project company), sponsor or JV agreement (agreement for rights, responsibilities and obligations of the sponsors and their inter-se relationships). The project company is incorporated by the sponsor as per the requirement of the Government authority or taken over from such Authority by purchase of shares.