Contractual Framework

Contractual Framework

Contractual framework in project finance is the successful coordination of various agreements and contracts to facilitate funding, development, and operation of large-scale ventures. These agreements form the backbone of the project, outlining the roles, responsibilities, and relationships among stakeholders. They encompass financial arrangements, contractual obligations, and risk allocation mechanisms, each serving a specific purpose in ensuring the project’s success.

From the early forms of contractual arrangements after World War II to the formalization and growth of project finance as a distinct financing model in the late 20th century, the world has witnessed the development of complex contractual structures that address the unique challenges of different sectors. Our team at GIA understands the historical significance and evolution of contractual relations in project finance.

In modern project finance, there are several main types of contracts that play a crucial role in defining the rights, obligations, and relationships among the parties involved. These include loan agreements, security agreements, guarantee agreements, intercreditor agreements, direct agreements, concession agreements, off-take agreements, supply agreements, construction contracts, operation and maintenance agreements, insurance contracts, and hedging contracts.

Enhance bankability

Set up your contracts correctly to mitigate risk.

Our team of financial advisors, project managers, experts, network of legal advisors and work together to ensure the successful implementation of these contracts. We have the expertise in project finance, as well as the legal and industry-specific knowledge, to draft, negotiate, and execute these contractual documents effectively.

By offering assistance in negotiating, developing, structuring, and signing project finance contracts, our services provide value to projects and companies in several ways. The contractual framework is there to safeguard investments, debt, offset risk and promote accountability. By clearly defining the rights and obligations of each party to your SPV, we minimize the risks associated with project finance and enhance the overall bankability of the project.

Loan agreements
Security agreements
Guarantee agreements
Intercreditor agreements
Off-take agreements
EPC / M contracts

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