
The life of a project can be divided into three phases:
• Development. The period during which the project is conceived, the Project
Contracts are negotiated and signed, and the equity and the project finance
debt are put in place and available for drawing—the end of this process is
known as “Financial Close” (or the “Effective Date”).
• Construction. The period during which the project finance is drawn down
and the project is built—the end of this process is often known as the “com-
mercial operation date” (or “COD”).
• Operation. The period during which the project operates commercially and
produces cash flow to pay the lenders’ debt interest and principal ...