Principles of Project Finance

or level of usage of the project. See

§8.8

RFP Request for Proposals, an invi-

tation to bid in a public procure-

ment. See §4.6.2

right of way A right of access to ad-

jacent land (e.g. for a pipeline bring-

ing fuel to the project). See §7.4.3

risk matrix Schedule of project

finance risks and mitigations. See

§8.3

rollover risk The risk that an interest

rate swap contract may not be

amended on acceptable terms if the

amount of debt or repayment sched-

ule changes. See §9.2.1

RPI Retail price index. See CPI.

Rule 144a SEC provisions that allow

trading in bond private placements

with QIBs. See §5.2.2

SACE Sezione Speciale per l’Assi-

curazione del Credito all’Es-

portazione, now superseded by

ISACE.

SEC Securities and Exchange Com-

mission (of the United States),

which regulates the investment mar-

kets. See §5.2.2

senior lenders Lenders whose debt

service comes before debt service

on mezzanine or subordinated debt,

or distributions to investors, and

who are repaid first in a liquidation

of the project Company. See

§13.13.5

sensitivities Variations on the Base

Case assumptions calculated by the

lenders. See §12.11

SFF EIB’s Structured Finance Facil-

ity, under which it will assume vari-

ous project risks. See §11.6.9

shadow tolls Tolls based on usage of

342 Glossary and Abbreviations

the project, but payable by the Con-

tracting Authority rather than the

general public (cf. real tolls). See

§6.2.2; §8.8.7

Shareholder Agreement An agree-

ment between Sponsors relating to

their investment in and management

of the Project Company. See §4.5.2

Simest Società Italiana per le Im-

prese all’Estero, which provides

Italian CIRR interest subsidies and

untied financing. See §11.5.7

site legacy risk The risk of preexist-

ing contamination on the project

site. See §7.1.4

site risks Risks related to the acquisi-

tion or condition of the project site.

See §7.1.4: §8.5.1; §8.5.4; §8.5.6

sovereign risk A risk carrying the

full faith and credit of a country (cf.

sub-sovereign risks). See §10.7.2

Sponsors The investors who develop

and lead the project through their in-

vestment in the Project Company.

See §4.1

SPV Special Purpose Vehicle, a sep-

arate legal entity with no activity

other than those connected with its

borrowing. See §2.4

step-in rights Rights under a Direct

Agreement for the lenders to take

over management of a Project Con-

tract to protect their security; cf.

emergency step-in, substitution. See

§7.7

subordinated debt Debt whose debt

service comes after amounts due to

senior lenders, but before distribu-

tions of dividends to investors; cf.

mezzanine debt. See §3.3; §12.7.2;

§13.13.5

subrogation Right of an insurer or