What Is The Advantage Of Using Model Contracts In Project Finance?

There are the advocates of tailor-made agreements in Project Finance which, they argue, properly incorporate the specific points unique to each individual BOT project, to each sector of activity and to each country, and who view model agreements as unnecessarily constraining and inevitably poorly adapted to the multitude of conflicting interests involved in this type of project.

On the other hand, there are the supporters of standardization who want to be able to rely on pre-established, internationally accepted terms and conditions, only making the minimum amendments necessary for each individual project in order to save time and reduce development costs.

Although the construction contract will be influenced by the specificity of the finance structure and by the interests of the various parties, this will be so to a lesser degree than the concession agreement itself or other project agreements which form the basis of the relationship between the granting authority