Changes to the project document requested by lenders. With regard to the first PFI projects, it was customary to have separate agreements for different phases of the project, such as. B a development agreement for the design and construction phase and an agreement to operate or manage facilities for the operating phase. Today, however, it is more common to have a single project agreement covering all aspects of the project. The ability of lenders to permanently transfer the rights and obligations of the project company to a replacement company during the intervention period; And another topic that can be the subject of intense debate is the length of the stage phase. From the lenders` point of view, this is ideally not limited. For this reason, the argument that the third party should not be concerned about the length of the intervention period is that the designated agent fulfills the obligations of the project company at this stage of the proceedings. It should be remembered that this is the period during which lenders must save the project and/or find a permanent replacement for the project company. The agreement between the counterparty and the funders not to terminate the project document for a specified period of time; The direct agreement of the lenders: this is a three-way agreement between the Authority, Projectco and the lenders, under which the Authority agrees to grant lenders a deadline for the early termination of the project agreement. This agreement will also provide lenders with the opportunity to intervene directly or through a candidate or representative to resolve the termination event or to find another party that is acceptable to the Authority to assume Projectco`s rights and obligations under the project agreement.

Plenipotentiary: One of the lenders is appointed as an agent and acts on behalf of the other lenders to manage the loan. By Katie Liszka If direct agreements are used in project financing operations to protect lenders, the project should be in trouble. These are contractual mechanisms that allow lenders to follow in the footsteps of the project company (the borrower) and take over the project and/or find a replacement unit to continue the project. The parties to the direct agreement include the project company itself and the consideration for the project document for which the direct agreement is a security. ]] > There is generally no debate as to whether, in principle, a direct agreement should be reached. However, it is still common for certain provisions to be negotiated intensively and it often seems that disproportionate amounts of time are devoted to concentration on such a short agreement. To my knowledge, no one has ever intervened as part of a direct agreement and there would be practical difficulties, such as the reallocation of all project contracts. However, direct agreements are a common practice and a standard part of a lender`s security package. Direct agreements are also commonly referred to as “tripartite agreements,” reflecting the fact that it is an agreement between three parties, i.e.

an issue that can be the subject of intensive negotiations is the responsibility of lenders during the intervention.