Principles of Project Finance

mentation before signing the financing also ensures that there are no unexpected

surprises from issues raised by lenders after the loan has been signed.

There may be further conditions precedent to each individual drawing of the

debt (cf. §13.3.2), in particular:

• Confirmation by the Project Company and the Lenders’ Engineer that the

amounts payable to the EPC Contractor are properly due and that the con-

struction remains on schedule

• That other amounts to be paid from the drawing are within the agreed con-

struction budget (cf. §8.5.4)

• That enough funds remain to complete construction

• That continuing representations and warranties (cf. §13.9) remain correct

• That no change of law has taken place (cf. §10.6)

• That no event of default or potential ...