Types of Project Agreement
The Project Contracts provide a basis for the Project Company’s construction and operation of the project. The most important of these is the Project Agreement (i.e. the contract that provides the framework under which the Project Company obtains its revenues). The Sub-Contracts which make up the rest of the Project Contracts are discussed in Chapter 8. A preliminary clarification: expressions such as BOT, DBFO, and so on are rather confusing, and overlap with each other. There is no need to use these terms (§6.2). There are three main models for a Project Agreement: (1) an Offtake Contract (i.e. a process-plant project), under which the Project Company produces a product and sells it to an Offtaker (§6.3); ...
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