Principles of Project Finance

other parties to the Project Contracts, and form part of the lenders’ security pack-

age. The Project Contracts may include the following:

• A Project Agreement, which may be

either an Off-take Contract (e.g., a power purchase agreement), under which

the product produced by the project will be sold on a long-term pric-

ing formula

or a Concession Agreement with the government or another public au-

thority, which gives the Project Company the right to construct the

project and earn revenues from it by providing a service either to the

public sector (e.g., a public building) or directly to the general public

(e.g., a toll road)

Alternatively, the project company may have a license to operate under the

terms of general legislation for the industry sector ...