15 Questions
What does EPC stand for?
Engineering (design), procurement and construction
What is the difference between EPC and turnkey contracts?
The EPC contract involves engineering, procurement, and construction, while turnkey contract implies that the owner only needs to 'turn the key' to start using the facility.
What is the purpose of an operation and maintenance (O&M) agreement?
To delegate the operation, maintenance, and performance management of the project to an experienced operator.
What is a concession deed in the context of construction projects?
An agreement giving the project company the right to use a government asset for a specified period.
What are some examples of concession agreements in infrastructure projects?
Toll roads, tunnels, or projects where the project company collects tolls or payments based on usage.
Who are the usual parties involved in a project financing?
Sponsor (Equity Investor), Lenders, Off-taker(s), Contractor, Operator, Financial Advisors, Technical Advisors, Legal Advisors, Equity Investors, Regulatory Agencies, Multilateral Agencies, Insurance Providers, Hedge providers
What is the primary basis for long-term funding in project financing?
Projected cash flows of the project
What is the most common type of project finance construction contract?
Engineering, procurement, and construction (EPC) contract
Why is it important in global project management to recognize legal binding contracts and frameworks?
To monitor the implementations of these frameworks
What are some examples of Multilateral Agencies / Export Credit Agencies involved in International Project Financing?
Multilateral Agencies, Export Credit Agencies
What are the basic contents of an EPC contract?
Description of the project, Price, Payment, Completion date, Completion guarantee, Liquidated Damages, Performance guarantee, Operation and maintenance agreement
What is the main difference between an EPC contract and a turnkey contract?
EPC involves engineering, procurement, and construction, whereas turnkey implies that the owner only needs to 'turn the key' for the facility to function as intended.
What is the purpose of an operation and maintenance (O&M) agreement?
To delegate the operation, maintenance, and performance management of the project to a reputable operator with expertise in the industry.
What does a concession deed grant the project company in infrastructure projects?
Use of a government asset for a specified period, such as a plot of land or river crossing.
What is the significance of a performance guarantee in an EPC contract?
It ensures that the EPC contractor will meet the performance standards as specified in the contract.
Learn about the concept of project financing, which involves funding infrastructure and industrial investments based on projected cash flows. Explore the different parties involved in International Project Financing, such as sponsors, lenders, and equity investors.
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