abandonment, of project
default, 321, 354
development agreement, 83, 85
abbreviations/acronymns/terms, 449–454
act of state doctrine, 140, 162
affiliates, transactions with, 321, 350
African Development Bank, 276, 293
Agreement on Officially Supported Export Credits, 296
anti-competitive activity
Council of Europe Criminal Law Convention on Corruption, 419, 423
European Union Convention on Fight Against Corruption, 419, 425
generally, 419
Inter-American Convention Against Corruption, 419, 421
International Chamber of Commerce Rules of Conduct to Combat Extortion and Bribery, 419, 426
OECD Convention on Combating Bribery of Foreign Officials in International Business Transactions, 419, 424
OECD Recommendation on Tax Deductibility of Bribes, 419, 424
procurement, 419, 420
European Bank for Reconstruction and Development, 419, 420
Inter-American Development Bank, 419, 420
World Bank, 419, 420
United Nations policy, 419, 425
Arab Fund for Economic and Social Development, 276, 294
arbitration. See dispute resolution
Asian Development Bank, 245–260, 276, 294
breach of undertaking by host government, 260
currency inconvertibility and currency transfer risks, 259
expropriation, 260
political violence, 260
assignments, consents to. See consents to assignment of project contracts
B Loan program, International Finance Corporation, 259
bankablity, 19
bankruptcy
forum, 389, 391
generally, 389
non-U.S. debtor with foreign assets, 389, 390
structuring solutions to avoid, 389, 391
types of, 389
U.S. debtor with foreign assets, 389, 390
bidding (tendering) processes, 139, 140
advantages, 139, 141
bid design and preparation of bid documents, 139, 142
bid meetings and bidder questions, 139, 143
bidding, project finance, 139, 143
consortium bids, 139, 144
disadvantages, 139, 141
evaluation and scoring, 139, 142
generally, 139, 140
lenders, when to involve, 139, 144
model contracts, 139, 143
multilateral agencies, promotion of public bids, 139, 143
non-self scoring, 142
pre-qualification of bidders, 139, 141
security, 139, 143
self-scoring, 142
special-purpose entities, 139, 143
World Bank, 143
bilateral agencies
Compagnie Française d’Assurance pour le Commerce Extérieur (France), 276, 299
direct lending, 276, 297
Eksportkreditraadet (Denmark), 276, 299
Export Credit Guarantee Department (United Kingdom), 276, 299
Export Credit Insurance Company (Spain), 276, 300
Export Development Corporation (Canada), 276, 299
Export Finance and Insurance Corporation (Australia), 276, 300
Export-Import Bank of Japan, 276, 298
Export-Import Bank of Korea, 276, 300
financial intermediary loans (bank-to-bank), 276, 297
financing, types of, 276, 297
Finnish Export Credit Limited (Finland), 276, 299
Garanti-Instituttet for Eksportkreditt (Norway), 276, 300
generally, 276, 295
Hermes Cover (Germany), 276, 299
Instituto Centrale per il Credito a Medio Termine (Italy), 276, 299
interest rate equalization, 276, 297
Netherlands, 276, 299
OECD Consensus, 276, 296
Oesterreichische Kontrollbank AG (Austria), 276, 300
Office National du Ducroire (Belgium), 276, 299
other support, 276, 300
Overseas Private Investment Corporation, 276, 298
Swedish International Development Authority, 276, 300
U.S. Export-Import Bank, 276, 297
bond
bid, 245, 252
labor and material, 245, 253
payment, 245, 252
performance, 245, 252
retention, 245, 253
warranty, 245, 252
bond financing, 78, 81, 275, 278
advantages, 280
credit ratings, 275, 278
disadvantages, 275, 280
generally, 275, 278
investment funds, 275, 282
bond financing (cont.)
mini-perm, 275, 280
mini-perm, amortizing, 275, 280
political risk insurance, 246, 265
Rule 144A (U.S.), 282
bond ratings, currency risk analysis, 275, 279
bribery. See anti-competitive activity
budgets
construction, 103
covenants, credit agreement, 321, 348
operating, 103
building materials, unavailability of as a risk, 58, 61, 164, 168
build-own-transfer, 47, 75, 81, 146
cancellation of project, 3, 24
capacity payments. See power sales agreement
cash call, 246, 271
cash trap, 58, 68
change of law. See risks, change of law
choice of forum, 404, 409
choice of law, 39, 55, 249, 309, 404, 408, 417
U.C.C., 365
co-financing, 78, 81
collateral
accounts, 363, 366
civil law, 363, 370
collateral trusts, 363, 372
common law, 363, 370
consents to assignment. See consents to assignment of project contracts, 363, 375
contract, cutoff, 212
contracts, 363, 366
contracts, notice of assignment, 212
enforcement, 363, 370
executory contracts, 377
floating lien, 363, 369
foreclosure, 363, 370
generally, 365
guarantees, 363, 366
insurance, 363, 380
additional insured, 363, 380
other issues, 363, 381
reinsurance, 363, 381
insurance, waiver of subrogation, 363, 381
insurance proceeds, 363, 366
intangible assets, 363, 365
intercreditor agreements, 363, 378
lender liability for contracts assigned as collateral, 363, 377
lien, “blanket,”, 363, 365
lien, priority of, 363, 370
liens, denominated in local currency, 363, 370
liens, types permitted, 363, 369
liquidated damages, 363, 366
local formalities, 363, 370
negative pledge, 363, 369
offshore accounts, 363, 378
ownership and operation, transfer of rights to, 363, 371
permits, licenses and concessions, 363, 365
personal property, 363, 365
political risk insurance, 363, 366
potential purchasers of, 363, 371
project cash flow, 363, 365
project contracts, 363–378
real property, 363, 367
real property, foreign ownership, 363, 371
revenues, payment to operating account, 363, 376
surety bonds, 363, 366
collateral documents
disbursement agreement, 363, 368
generally, 363, 367
mortgage, deed of trust and indenture, 363, 367
offshore accounts, 363, 368
ownership interests, pledge of, 363, 367
security agreement, personal property, 363, 367
voting trust, 363, 368
collateral risk. See risks, collateral security
collateral security
collateral trusts, x, xxxix, 39, 54, 363
forclosure, 39, 53
lien enforcement, 39, 53
local formalities, 39, 53
priority, 39, 53
real property, 39, 54
risks, 39–54
types of collateral security permitted, 39, 53
collateral, insurance, loss payee, 363, 380
collateral, insurance, non-vitiation clause, 363, 380
comfort letter, 245, 251
commercial risks. See risks
commitment letter, 310–317
application process, 310, 311
conditions to closing, 310, 315
conditions to closing, sample provision, 310, 315
covenants, 310, 314
covenants, sample provision, 310, 314
events of default, 310, 314
events of default, sample provision, 310, 314
expenses, 310, 316
expenses, sample provision, 310, 316
general recommendations, 310, 317
letter of intent, 310, 311
loan amount, 310, 312
loan amount, sample provision, 310, 312
material adverse change, 310, 316
material adverse change, sample provision, 310, 317
non-disclosure, 310, 316
non-disclosure, sample provision, 310, 316
oral, 310, 312
preliminary advice from lender, 310, 311
repayment terms, 310, 313
repayment terms, sample provision, 310, 313
representations and warranties, 310, 313
representations and warranties, sample provision, 310, 313
scope of, 310, 312
scope of, sample provision, 312
term, 310, 316
term sheet, 310
term, sample provision, 310, 316
use of proceeds, 310, 313
use of proceeds, sample provision, 310, 313
Compagnie Française d’Assurance pour le Commerce Extérieur (France), 276, 299
completion of project. See also construction contract
bonus, early completion, 164, 179
delay in, 58, 60
guarantees of, 164, 177
representation and warranty, 122, 136
concession agreement, 48, 139, 145
BOT structure, example in, 139, 146
construction contract, coordination with, 165, 187
disputes, 139, 146
host government, 139, 145
ongoing consents and approvals by host government, 139, 146
concessions and licenses
compliance with, 165, 187
risks, 39, 47
consents to assignment of project contracts, 363, 375
contracting party perspective, 363, 376
host government’s perspective, 363, 376
project company’s perspective, 363, 376
secured party perspective, 363, 375
construction contract, 164, 170
bonds, 164, 183
bonus, 164, 179
breach, remedies for, 164, 181
building materials, 164, 168
change in work, 164, 181
change orders, lender restrictions on, 320, 344
concession, compliance with, 165, 187
construction costs, 164, 166
construction of project-related facilities, 164, 168
contractor resources and experience, 164, 167
coordination, 164, 165, 169, 184
correction of work, 164, 178
cost overrun, implications of in credit agreement, 321, 350
cost-plus-fee contract, 164, 171
cost-plus-fee, with maximum price and incentive fee, 164, 171
delay, 164, 166
engineering contract, 164, 169
environmental guarantee, 164, 179
EPC contract, 164, 170
excuses to performance, 164, 168
final acceptance date, failure to achieve, 321, 353
final completion, 164, 178
fixed-price contract, 164, 170
force majeure, 164, 165, 167, 184
generally, 164, 165
guarantee, performance, 164, 177
guarantees, alternatives to, 164, 179
guarantees, exceptions to, 164, 179
insurance, 165, 183
liability limitations, 165, 186
liquidated damages, delay, 164, 178
mechanical completion, 164, 177
notice to proceed, 164, 174
offset, 303
offset, sample of, 303
payment bond, 164, 183
performance bond, 164, 183
performance guarantee, 164, 166
price, 164, 175
procurement contract, 164, 170
project company, responsibilities, 164, 173
project documents, compliance with, 165, 186
project finance turnkey contract, 164, 171
raw materials and utilities, 164, 168
responsibilities, contractor, 164, 172
retainage, 164, 176
retention bond, 165, 183
risks, 164–169
scope of work, 164, 172
site conditions, 165, 186
subcontractors, 165, 185
substantial completion, 164, 177
suspension of work, 164, 182
termination for convenience, 165, 187
termination of work, 164, 182
testing, 164, 178
title to work, 164, 181
training, 165, 185
types, 164–172
typical provisions, 164–187
warranties, 164, 180
warranty bond, 165, 183
contractor, 35
as financing source, 276, 303
creditworthiness, 164, 169
contracts
amendments, modifications and supplements, 113, 115
commercial impracticability, 209, 212
cooperation for project financing, 113, 116
cooperation for project financing, example of, 113, 116
coordination with construction contract, 165, 186
credit support, as, 209, 211
damages, 113, 119
enforecability, 113, 114
force majeure, 113, 118
formalities, 113, 114
formation, 113, 114
forum for dispute resolution, 113, 114
frustration of purpose, 212
general requirements in project finance, 113
governing law, 113, 114
government action, 113, 115
input contracts, 188
internationalization of, 113, 120
language, 113, 115
liquidated damages, 113, 119
list of types needed, 113, 115
mutual mistake, 213
nonrecourse, 113, 115
nonrecourse provision, examples of, 116
output and requirements, example of, 209, 213
project completion, 113, 117
project completion, example of, 113, 117
renegotiation, 140–158, 219–221, 222, 232
risks in contract terms and defenses, 209, 211
specific performance, 113, 119
structure and validity, 113, 114
term, 113, 115, 117
turnkey construction, 164, 171
unconditional obligation, 113, 118
unconscionability, 213
Contracts (Rights of Third Parties) Act, 1999, 374
Council of Europe
Criminal Law Convention on Corruption, 419, 423
country support agreement, 150
credit agreement
abandonment of project, default, 321, 354
abandonment of project, default, sample provision, 321, 354
accounts, 321, 349
accounts, sample provision, 321, 349
affiliates, transactions with, 321, 350
affiliates, transactions with, sample provision, 321, 350
assets, sale of, 321, 349
assets, sale of, sample provision, 321, 349
bankruptcy, default, 321, 352
bankruptcy, default, sample provision, 321, 352, 353
breach of covenant, default, 321, 351
breach of covenant, default, sample provision, 321, 351
capital expenditures, 321, 349
capital expenditures, sample provision, 321, 350
change orders, 320, 344
change orders, sample provision, 320, 344
closing, conditions to, 318–335
closing, conditions to, sample provisions, 318–335
construction cost overruns, 321, 350
construction cost overruns, sample provisions, 321, 350
construction drawdown, conditions to, 319–337
construction drawdown, conditions to, sample provisions, 319–337
conversion of construction loan to term loan, conditions to, 319–339
conversion of construction loan to term loan, conditions to, sample provisions, 319–339
covenants, 320–350
covenants, sample provisions, 320–350
credit support, breach of, default, 321, 355
credit support, breach of, default, sample provision, 321, 355
engineering standards, 320, 343
engineering standards, sample provision, 320, 343
environmental compliance, 320, 343
environmental compliance, sample provision, 320, 343
events of default, 350–356
export financing, sponsor support, subordinated debt, maximizing use of, 320, 346
credit agreement (cont.)
export financing, sponsor support, subordinated debt, maximizing use of, sample provision, 320, 346
expropriation, default, 321, 354
expropriation, default, sample provision, 321, 354
final acceptance date of project, default, 321, 353
final acceptance date of project, default, sample provision, 321, 353
financial reporting, 321, 348
financial tests, 320, 347
financial tests, sample provision, 320, 347
governing law, 321, 356
government approvals, default, 321, 353
government approvals, default, sample provision, 321, 354
guarantees, 321, 349
guarantees, sample provision, 321, 349
indebtedness, 320, 345
indebtedness, sample provision, 320, 345
insurance, 320–344
insurance, sample provision, 320, 343
investments, 320, 345
investments, sample provision, 320, 345
judgments, default, 321, 353
judgments, default, sample provision, 321, 353
laws, obligation to comply with, 320, 342
laws, obligation to comply with, sample provision, 320, 342
liens, 320, 345
liens, sample provision, 320, 345
maintain existence, obligation to, 320, 341
maintain existence, obligation to, sample provision, 320, 341
maintain interest in project, obligation to, 320, 341
maintain interest in project, obligation to, sample provision, 320, 341
maintenance of properties, obligation for, 320, 343
maintenance of properties, obligation for, sample provision, 320, 343
merger and consolidation restrictions, 320, 342
merger and consolidation restrictions, sample provision, 320, 342
milestones, project, 320, 347
milestones, project, sample provision, 320, 347
nonrecourse, exceptions to, 321, 356
notice to lender of certain events, 320, 341
notice to lender of certain events, sample provision, 320, 341
obligations, payment of, default, 321, 355
obligations, payment of, default, sample provision, 321, 355
operating budget, 321, 348
operating budget, sample provision, 321, 348
other business, engaging in, 320, 345
other business, engaging in, sample provision, 320, 345
overview, 318, 328
ownership and control, default, 321, 355
ownership and control, default, sample provision, 321, 355
payment, default, 321, 350
payment, default, sample provision, 321, 351
permits and licenses, obligation to obtain and maintain, 320, 342
permits and licenses, obligation to obtain and maintain, sample provision, 320, 342
prepayment, mandatory, 320, 346
prepayment, mandatory, sample provision, 320, 346
proceeds, use of, 321, 348
proceeds, use of, sample provision, 321, 348
project changes, 320, 347
project changes, sample provision, 321, 347
project contracts, default, 321, 354
project contracts, default, sample provision, 321, 354
project documents, amendments and changes, 320, 344
project documents, amendments and changes, sample provision, 320, 344
project documents, performance of, 320, 344
project documents, performance of, draft provision, 320, 344
remedies of lender on default, 321, 356
reports to lender on construction and operation, 320–341
reports to lender on construction and operation, sample provisions, 320–341
representation or warranty breach, default, 321, 351
representation or warranty breach, default, sample provision, 321, 351
representations and warranties. See representations and warranties
restricted payments, 320, 346
restricted payments, sample provision, 320, 346
security documents, 321, 348
security documents, default, 321, 356
security documents, default, sample provision, 321, 356
security documents, sample provision, 321, 348
support for project, 321, 347
support for project, sample provision, 321, 347
taxes, obligation to pay, 320, 341
taxes, obligation to pay, sample provision, 320, 342
credit enhancement
bonds. See bond
cash call, 246, 271
commodity supplier as project partner, 246, 271
generally, 245, 246
government-funded account, 246, 269
guarantees. See guarantees
hedging strategies, 246, 271
implementation agreement, 246, 270
indemnification obligations, 246, 267
insurance. See insurance
insurance, lender requirements, 320, 343
letter of credit, 245, 246, 252, 270
liquidated damages, 246, 266
pledge of receivables by state-owned utility, 246, 269
political risk insurance. See insurance, political risk
put option, 245, 251
reserve funds, 246, 271
sovereign guarantee, 246–269
state devolution account, 246, 270
subordination of project costs to debt service, 246, 271
subordination, by government, 246, 269
surety obligtaions, 245, 252
warranty, 246, 266
credit ratings, 275–279
generally, 275, 278
legal (contract) risk analysis, 275, 279
market for output, 275, 279
political risk analysis, 275, 279
sovereign risk analysis, 275, 278
cross-border risks. See risks
Currency and Foreign Transactions Reporting Act (U.S.), 392, 398
currency devaluation, 39–45
advance approvals, 39, 46
consent, 39, 46
currency options, 45
debt repayment, 39, 46
derivatives, 39, 45
exemption, 39, 46
forward contracts, 45
generally, 39, 44
matching revenue currency to debt currency, 39, 44
offshore accounts, 39, 45
raising debt in local currency, 39, 45
sharing of risks, 39, 45
currency-related risks, 39–47
advance approval, 39–46
devaluation, 39–45
generally, 39–41
guarantees, 245, 249
large projects, 46
nonconvertibility (unavailability of foreign exchange), 39–41
offshore accounts, 46
special currency problems in large-scale projects, 39, 46
summary of currency risk minimization techniques, 39, 46
transfer (inability to transfer foreign exchange abroad), 39–44
Dabhol power project, 23–24, 219–221
contract renegotiation, 209, 219
damages, liquidated. See liquidated damages
developing countries
alternatives to project finance, 19
arbitration, example of, 416
collateral problems, 363, 369
difficulties in infrastructure development, 18–19
economic conditions, 99, 101
equity return, effect on power price, 222, 231
generally, 3, 17
power purchase agreements, common risk allocation in, 223, 239
project finance in, 99, 101, 102
risks, 99, 101
development agreement
abandonment, 83, 85
antitrust and restrictive trade practices, 83, 85
confidentiality, 83, 85
cost funding, 83, 84
definition of project, 83, 84
exclusivity, 83, 84
management and voting, 83, 84
roles and responsibilities, 83, 84
tasks and schedule, 83, 84
withdrawal, 83, 85
development loans, 276–302
definition, 276, 301
developmental lender, goals of, 276, 301
generally, 276, 301
project sponsor, goals of, 276, 301
dispute resolution
ad hoc, 404, 412
alternatives, 404, 406
American Arbitration Association, 404, 411
arbitration
advantages of, 404, 405
challenging awards, 404, 412
host country, 413–414
bilateral investment treaties, 404, 410
choice of forum, 404, 409
choice of law, 404, 408
choice of panel, 404, 411
contract provisions, 418
contractor and operator perspective, 404, 407
developing countries, 404, 410, 414
examples of, 416
generally, 404
governing law, failure to select, 404, 410
governing law, flexibility for, 404, 409
inconsistent procedures, 404, 407
Inter-American Commercial Arbitration Commission, 404, 411
International Centre for Settlement of Investment Disputes, 404, 411
International Chamber of Commerce, 404, 411
lender perspective, 404, 407
lex mercatoria, 404, 409
litigation, advantages of, 404, 405
London Court of International Arbitration, 404, 411
New York Convention, 404, 409
New York law, 404, 409
off-take purchaser perspective, 404, 407
pacta sunt servanda, 404, 413
Panama Convention, 410
project company perspective, 404, 407
project financing, 404, 406
project participants not parties to contract, 404, 412
renvoi, 404, 408
Stockholm Chamber of Commerce, 404, 411
United Nations Commission on International Trade Law, 404, 411
Washington Convention, 410
due diligence, 12, 13, 16, 58, 59, 123, 125, 126, 263, 318, 327
checklist, 433
East-Asian financial crisis, 23
decrease in market demand for private power, 3, 23
increased cost of power, 3, 21
power purchase contract renegotiation, 3, 22
economic feasibility, 104
assumptions, 103, 104
construction budget, 103
debt service, 103
operating budget, 103
purpose, 103
ratios, 103, 104
valuation, 103, 104
working capital, 103
Eksportkreditraadet (Denmark), 276, 299
energy generation projects, 3, 13
energy payment. See power purchase agreement
environment, 105–110
aesthetics, 105, 107
air, 105, 106
audit, 105, 108
Equator Principles, 105, 109
future regulation, 105, 109
generally, 105
health hazards, 105, 106
historic and cultural significance, 105, 107
home country, 105, 106
host country, 105
impact, 105, 106
indigenous people, 105, 107
international treaties, 105, 106
multilateral and bilateral institutions, 105
noise, 105, 107
OECD Recommendation on Common Approaches on Environment and Officially Supported Export Credits, 108
permits, 105, 107
plant and animal habitats, 105, 106
public opposition, 105, 107
site, 105, 106
transportation, public services and utilities, 105, 107
water, 105, 106
World Bank Environmental Standards, 105, 108
Equator Principles, 105, 109
2006 Revisions, 105, 110
Equator Principles Financial Institution, 109
equity investor, 37
project interests, restrictions on sale of by lender, 318, 327
ethanol production projects, 3, 15
European Bank for Reconstruction and Development, 276, 294
anti-bribery guidelines, 419, 420
procurement policies, 419, 420
European Investment Bank, 276, 294
European Union, 276, 294
Convention on Fight Against Corruption, 419, 425
exchange controls
enforcement, 39, 43
permissions and consents, 39, 43
reducing exposure, 39, 44
types, 43
violation of, 39, 43
executory contracts, 211
expatriation, 39, 49
export and transit governments, 36
export credit, 357–359
direct lending, 357, 358
documentation, 359
Export Credit Guarantee Department (U.K.), 246, 264
Export Development Corporation (Canada), 246, 264
financial intermediary loans (bank-to-bank), 357, 358
generally, 357
interest rate equalization, 357, 358
Japanese Bank for International Cooperation, 246, 263
OECD Consensus, 357
other agencies, 246, 264
types of export-import financing, 357, 358
U.S. Export-Import Bank, 245, 263
Export Credit Guarantee Department (United Kingdom), 276, 299
Export Credit Guarantee Department of the United Kingdom Department of Trade and Industry, 246, 264
Export Credit Insurance Company (Spain), 276, 300
Export Development Corporation (Canada), 246, 264, 276, 299
Export Finance and Insurance Corporation (Australia), 276, 300
export financing, 78–80
export prohibitions, 40, 56
export restrictions, 392, 399
Export-Import Bank of Japan, 276, 298
Export-Import Bank of Korea, 276, 300
Export-Import Bank, United States, 245, 263
export-import financing, methods of, 276, 297
expropriation, 39, 48
creeping, 48
default in credit agreement, 321, 354
just compensation, 48
False Statements Act (U.S.), 392, 398
feasibility study, 95–98
contracts, 95, 96
economic information, 95, 96
financing, 95, 97
general description, 95
government, 95, 97
market, 95, 97
privatization, 95, 97
project participants, 95
project sponsors and project company, 95
purpose, 95
schedule, 95, 96
technical information, 95, 96
financeable, 19
financial tests in credit agreement, 320, 347
financing sources
banks and institutional lenders, 277
bilateral agencies, 276–300
bonds, 275–281
contractor, 276, 303
development loans, 276–302
equity markets, 275, 278
equity, domestic, 275, 278
equity, international, 275, 278
generally, 277
Global Environment Facility, 276, 300
host government, 276, 302
International Bank for Reconstruction and Development, 275–286
project participants, 276, 302
regional development banks, 276–295
securitization of cash flows, 276–305
subordinated debt, 276–301
World Bank, 293
Finnish Export Credit Limited (Finland), 276, 299
force majeure
construction contract, 165, 184
input contract, 188, 190, 195
operation and maintenance agreement, 198, 200, 208
power sales agreement, 222, 226, 233
Foreign Corrupt Practices Act (U.S.)
anti-bribery provisions, 392, 394
corrupt inent, 392, 394
exceptions and defenses, 392, 395
expense reimbursement, 392, 396
facilitating payments, 392, 395
foreign official, 392, 395
influencing foreign official, 392, 395
interstate commerce and acts in furtherance, 392, 394
offer, payment or gift, 392, 394
payments authorized by local law, 392, 396
subsidiary corporations, 392, 396
avoiding violations of, 392, 397
contract drafting considerations, 392, 397
enforcement and penalties, 392, 396
generally, 394
local partners, 392, 397
Foreign Sovereign Immunities Act of, 1976 (U.S.), 140–162
arbitration award, 160
attachment of sovereign’s property, 140, 160
case study, waiver of sovereign immunity in a project finance transaction, 140, 161
certain commercial activity excepted, 159
counterclaims, 140, 160
exceptions to immunity, 140, 159
generally, 140, 159
martime exception, 160
mortgage, 160
property taken in violation of international law, 160
sovereign liability, 140, 160
waiver of sovereign immunity, 159
forward purchase agreements, 78, 82
freezing or blocking orders, 40, 56
Garanti-Instituttet for Eksportkreditt (Norway), 276, 300
Global Environment Facility, 276, 300
guarantee, performance
alternative to, construction, 164, 179
availability, 177
capacity, 177
completion, construction, 164, 177
efficiency, 177
environmental, 164, 179
exceptions to, 164, 179
input, 177
operation and maintenance agreement, 198, 199
output, 177
reliability, 177
guarantees
cash deficiency, 245, 250
claw-back, 245, 249
collateral, 245, 248
comfort letter, 245, 251
completion, 245, 250
counter-guarantee, 259
currency risk, 245, 249
generally, 245, 247
implied, 245, 251
indirect, 245, 250
Inter-American Development Bank, 260
limited guarantees, 245, 249
put options, contrast to, 245, 248
retention, 164, 176
sovereign, 139–153.
See also sovereign guarantee
sponsor, 245, 247
take-and-pay contract, 245, 251
take-or-pay contract, 245, 250
tax implications, 245, 249
third party, 245, 248
transnational, 245, 248
U.S. Export-Import Bank, 263
unlimited, risks with, 245, 250
World Bank, 245–259, 275–292
Hermes Cover (Germany), 276, 299
host country, 76
arbitration, 413–414
business environoment for project finance, 101
economic conditions, 99, 101
future governments, commitment to project, 140–158
human rights, 99, 100
legislative and regulatory, 99, 100
political risks, 99
host government, 27–36
breach of undertaking, 260
Asian Development Bank, 260
Multilateral Investment Guarantee Agency, 258
World Bank guarantee, 259
human rights, 99, 100
implementation agreement, 139–153
authorization to do business, 139, 149
constitutionality, 139, 150
country support agreements, contrasted to, 139, 150
currency concerns, 139, 148
damages, 139, 150
enforcement and dispute resolution, 139, 150
exclusive right to develop project, 139, 149
expropriation, 139, 147
generally, 139, 147
good citizenship, 139, 150
legislative protection, 139, 149
general cooperation, 139, 149
nondiscrimination clause, example of, 150
permits and other governmental approvals, 139, 148
sovereign guarantee, 139–153, 267–268
stabilization clause, 139, 151
tax benefits and customs duties relief, 139, 148
tax holiday, 139, 149
war, insurrection, general strikes, and political violence, 139, 149
indemnification, 246, 267
independent engineer, 95, 98
indigenous people, 105, 107
input contract
alternative inputs, 188, 197
breach, remedies for, 188, 196
change of law, 188, 195
commodity supplier as project partner, 188, 192
cost increase, 188, 189
dedicated reserves, 188, 191
default, 188, 195
excuses to performance, 188, 192
experience of supplier, 188, 190
experience of transporter, 188, 190
firm vs. interruptible, 188, 191
fixed amount contract, 188, 191
force majeure, 188, 190, 195
fuel management, 188, 190
generally, 188
linking project inputs to outputs, 188, 191
mining and production plans, 188, 197
output contract, 188, 191
payment, 188, 193
price, 188, 193
quality, 188, 190
quality and rejection, 188, 194
quantities, 188, 193
requirements contract, 188, 191
reserves, 188, 197
scheduling, metering and weighing, 188, 193
specific performance, 188, 196
spot contract, 188, 191
subordination of costs to debt service, 188, 192
supply, availability of, 188, 190
term, 188, 194
termination, by project company, 188, 195
termination, by supplier, 188, 195
termination payments, 188, 196
title and risk of loss, 188, 194
transportation, 188, 190
transportation facilities, delay in completion, 188, 190
types of, 188, 191
typical provisions, 188–197
when needed, 188, 189
input supplier
creditworthiness, 188, 192
Instituto Centrale per il Credito a Medio Termine (Italy), 276, 299
insurance, commercial, 245, 253
additional insured, project lender as, 245, 253
all-risks, contractor, 245, 254
all-risks, operator, 245, 255
collateral, 245, 254
commercially available in the marketplace standard, 245, 255
employers’ liability and worker’s compensation, 245, 255
exchange controls, 245, 256
export financing requirements, 245, 256
finite risk, 245, 255
lender requirements, other, 245, 254
loss of revenue, 245, 255
marine, 245, 255
operator, 245, 255
loss payee, project lender as, 245, 253
marine cargo, 245, 255
non-vitiation clause, 245, 254
reinsurance, 245, 254
subrogation, waiver of, 245, 254
third-party liability, 245, 255
trade disruption, 245, 255
insurance, political risk
approval by host country, 140, 157
Asian Development Bank, 245–260
assignment rights, 246, 265
bond financing in emerging market project finance, 246, 265
commercial, 246–265
credit evaluation of, 246, 266
generally, 245, 256
International Finance Corporation, 245, 258, 259
MIGA Cooperative Underwriting Program (CUP), 246, 265
Multilateral Investment Guarantee Agency, 245–258
Overseas Private Investment Corporation, 245–263
World Bank, 245–259
Inter-American Convention Against Corruption, 421
Inter-American Development Bank, 245, 260, 276, 294
breach of undertaking by host government, 260
expropriation, 260
guarantee, political risk, 260
procurement policies, 419, 420
war, revolution and civil disobedience, 260
Inter-American Investment Corporation, 276, 295
intercreditor agreements, 363, 378
generally, 363, 378
lender goals, 363, 379
typical arrangements, 380
Internal Revenue Code (U.S.), illigeal bribes, deduction for, 392, 398
International Bank for Reconstruction and Development
debt refinancing, 275, 290
enclave programs, 275, 285
enclave project financing, 275, 289
general requirements, 275, 284
generally, 275, 282
guarantee program, 275, 284
indirect support, 275, 285
loan program, 275, 283
negative pledge, 275, 285
International Chamber of Commerce
Rules of Conduct to Combat Extortion and Bribery, 419, 426
International Development Association, 275, 286
International Finance Corporation, 245, 258, 275, 287
A-B Loan program, 259, 287
catalyst for participation by other entities, 288
co-financing, 258, 287
currency inconvertibility and currency transfer risks, 258
equity program, 275, 288
generally, 275, 287
guarantee program, 275, 288
insurance, political risk, 259
last resort lender, status as, 288
loan program, 275, 287
participation, benefits of, 275, 288
political risk protection, 288
private sector, ability to invest in, 288
International Monetary Fund, 275, 286
Islamic Development Bank, 276, 295
Japanese Bank for International Cooperation, 246, 263
joint venture, 83, 90
Koran, financings consistent with, 276, 304
law and legal system risk. See risks
law of project finance, 3, 20
law, change of
customs duties, 39, 50
environmental controls, 39, 51
export tariffs, 39, 49
foreign laws, 39, 51
import tariffs, 39, 49
nondiscrimination contract provision, example of, 39, 50
price controls, 39, 51
privatization of suppliers or purchasers, 39, 51
production or consumption controls, 39, 50
regulation and deregulation, 39, 51
taxes, 39, 50
withholding taxes on payment of interest, 39, 50
lawyers, local, 400–403
opinions, 400, 401
lease financing, 78–81
legal culture. See risks, legal culture
Legislative Guide on Privately Financed Infrastructure Projects, 20
lender
assignments, 318, 327
construction, 34
contract amendments, approval of, 318, 327
due diligence, 318, 327
excess cash flow, control over, 318, 327
generally, 318, 321
permanent, 35
project interests, restrictions on sale of, 318, 327
lender, credit review of project
completion and cost overrun, 318, 324
construction of related facilities, 318, 324
contractor, experience and resources, 318, 322
currency and exchange risks, 318, 325
energy, predictability of price and supply, 318, 323
equity contributions, timing and certainty, 318, 325
equity returns, 318, 325
force majeure, 318, 326
generally, 318, 322
interest rate, 318, 326
market for product or service, 318, 323
off-take contract, terms and enforceability, 318, 324
operating expenses, 318, 325
operator, experience and resources, 318, 323
permits and licenses, 318, 324
political environment, 318, 325
project management team, experience and reputation, 318, 322
project sponsor, experience and reputation, 318, 322
project, value as collateral, 318, 325
project-specific risks, 318, 326
raw materials, predictability of price and supply, 318, 323
real estate, 318, 324
technology, 318, 324
letter of credit, 246, 270
letter of intent, 139, 144
leveraged debt, 3, 10
lex mercatoria, 404, 409
liens. See collateral
liquidated damages
buy-down, 177
collateral, as, 363, 366
construction contract, 164–180, 246, 266
delay, 164, 178
enforcement, 267
generally, 267
limitation on, 178
operation and maintenance agreement, 198, 199–200, 204
litigation. See dispute resolution
loan agreement. See credit agreement
loan financing, 78–79
local bank letter of credit, 246, 270
Mail and Wire Fraud Acts (U.S.), 392, 398
merchant facility
commodity output risk, management of, 429, 432
commodity risk, management of, 429, 430
generally, 430
loan covenants, 429, 432
market risk, 429, 430
milestones, 139, 155
mining, 3, 14
mortgage, deed of trust and indenture. See collateral
Multilateral Investment Guarantee Agency, 245, 256
breach of undertaking by host government, 258
currency inconvertibility and transfer risk coverage, 257
expropriation coverage, 258
insurance, political risk, term of, 258
political risk insurance, coverage, 245, 257
political risk insurance, eligibility, 245, 257
political risk, generally, 245, 256
war, revolution and civil disobedience coverage, 258
needs assessment, 95, 98
New York Convention, 404, 409
nondiscrimination, in implementation agreement, 139, 149
nonrecourse, 3, 8
contract provision, examples of, 9
exceptions to recourse in credit agreement, 321, 356
Nordic Development Fund, 276, 295
Nordic Investment Bank, 276, 295
notice to proceed, 164, 174
OECD Consensus, 276, 296, 357
OECD Recommendation on Common Approaches on Environment and Officially Supported Export Credits, 108
Oesterreichische Kontrollbank AG (Austria), 276, 300
off-balance-sheet, 3, 9
offering memorandum, 306–309
borrower, 306
closing, conditions to, 306, 308
collateral, 306, 307
cost overruns, 306, 307
covenants, 306, 308
credit enhancement, 306, 308
debt amount, 306, 307
debt and equity, sources of, 306, 307
debt commitment, 306, 308
debt repayment, 306, 308
defaults, 306, 308
drawdown of funds, conditions to, 306, 308
equity terms, 306, 307
fees, 306, 308
governing law, 306, 309
interest rate, 306, 308
key provisions, 306
lawyers, advisors and consultants, 306, 309
project overview, 306
project sponsors, 306, 307
purpose, 306
uses of proceeds, 306, 307
Office National du Ducroire (Belgium), 276, 299
offset, 303
offshore account, 46, 49, 363, 368, 378
off-take contract
blended, 209, 210
capacity allocation, 209, 215
long-term sales agreement, 209, 211
option, 209, 215
reserve capacity, 209, 215
spot sales, 209, 211
standyby charge, 209, 216
take-and-pay contract, 209, 210
take-or-pay contract, 209
typical provisions, 216
OPEC Fund for International Development, 276, 295
operation and maintenance agreement
breach, remedies for, 198, 205
capital changes, 198, 205
coordination, 198, 201
cost increase, 198, 199
cost-plus-fee agreement, 198, 202
cost-plus-fee with maximum price and incentive, 198, 202
excuses to performance, 198, 201
fixed-price contract, 198, 201
force majeure, 198, 200, 208
generally, 198
insurance, 198, 207
liquidated damages, 198, 204
operator experience and resources, 198, 200
performance guarantees, 198, 199, 204
price, 198, 204
raw materials and utilities, 198, 200
responsibilities, operator, 198, 202
responsibilities, project company, 198, 203
self-operation, 198, 199
standards, 198, 204
suspension of services, 198, 206
termination procedure, 198, 207
typical provisions, 208
operator, 35
creditworthiness, 198, 201
Organization for Economic Cooperation and Development
OECD Convention on Combating Bribery of Foreign Officials in International Business Transactions, 419, 424
Recommendation on Tax Deductibility of Bribes, 419, 424
Organization of American States
Inter-American Convention Aganist Corruption, 419, 421
output purchaser, 27–36
Overseas Private Investment Corporation, 245, 260, 276, 298
bilateral agreements, necessity for, 261
bond financing, 263
bond financing political risk, 266
currency inconvertibility and currency transfer risk, 261
eligibility for insurance, 261
expropriation, 262
insurance, political risk, 245–263
oil and gas project financings, 262
political risk insurance, generally, 261
political violence, 262
power project financings, 262
project contractors and exporters, 263
pacta sunt servanda, 404, 413
Panama Convention, 410
permits, 39, 47
environmental, 105, 107
foreclosure, 39, 53
host government, 71, 74
implementation agreement, 139, 148
legislative and regulatory considerations, 99, 100
lender requirements for, 320, 342
representation and warranty, 122, 134
representations and warranties in credit agreement, 122, 134
risks, 39, 47, 58, 65
sample provision, 122, 135
pipelines, 3, 14
political risk. See risks
political risk insurance. See insurance, political risk
power purchase agreement. See power sales agreement
power sales agreement, 222, 223
approval of project contracts, 222, 224
bonuses, 222, 230
capacity and energy payment, 222, 228
capacity payment, 222, 228
adjustments, 222, 229
back-loaded, 222, 229
beginning date of, 222, 231
fixed or variable, 222, 228
floor, 222, 228
levelized, 222, 229
ending date of, 222, 231
capacity shortfall, 222, 225
change of law, 222, 234
commercial operation, delay in, 222, 225
commercial operations, 222, 225
currency convertibility, 222, 234
delivery point, 222, 227
development obligations, 222, 223
eminent domain, 222, 227
energy payment, 222, 229
fixed or variable, 222, 230
floor, 222, 230
forecasted, 222, 230
indexed, 222, 230
equity return, effect on price in developing countries, 222, 231
failure to construct facility, 222, 225
financial closing, 222, 225
force majeure, 222, 226, 233
front-loaded, 222, 229
fuel costs, 222, 230
insurance, 223, 239
interconnection, 222, 227
interconnection facilities, 222, 227
land rights, 222, 227
letter of credit to support state utility payment, 246, 270
metering, 222, 236
milestones, performance, 222, 224
obligation to deliver power, 222, 226
obligation to take power, 222, 226
operating procedures, 222, 236
ownership of project at expiration of term, 222, 236
payment, 222, 234
penalties, 222, 230, 236
penalties, missed milestones, 222, 225
pledge of receivables to support state utility payment, 246, 269
political risk, 222, 234
power purchaser credit risk, 246–270
power purchaser, right to operate, 222, 236
price, 222, 227
price, summary of options, 222, 228
project lenders, 222, 235
regulatory out, 223, 237
remedies, 222, 235
renegotiation, 222, 232
responsibilities, power purchaser, 223, 238
responsibilities, project company, 223, 238
risk allocation, typical, 223–242
power sales agreement (cont.)
security for performance
cash and letters of credit, 222, 233
equity undertaking, 222, 233
generally, 222, 232
lien, 222, 232
state devolution account, 246, 270
take-and-pay, 222, 228
take-or-pay, 222, 228
technical standards, 222, 236
term, 222, 234
termination, 222, 235
payments, 222, 235
by project company, 222, 235
by power purchaser, 222, 235
third-party sales, 223, 237
tolling agreements, 223, 242
tracking account, 222, 233
uncontrollable events, 222, 234
wheeling, 222, 227
price regulation, 139, 156
privatization, 7, 14, 19, 48, 51, 75, 76, 95–98, 145, 146, 151, 152, 157, 268, 279, 294, 295
benefits, 95, 97
effect on project feasibility, 95, 98
types, 95, 97
production or consumption controls, 39, 50
production payments, 78, 81
project company
considerations in determining the type of entity, 83–86
corporation, 83, 87
development consortium, 83, 91
European economic interest grouping, 83, 91
host-country requirements, 83, 86
joint venture, 83, 90
joint venture agreements, 385, 386
limited liability company, 83, 90
limited partnership, 83, 89
management agreements, 385, 386
ownership, generally, 385
partnership, 83, 88
partnership agreements, 385, 386
special-purpose entity, 83, 86
stockholder agreements, 385
project contracts
amendment to, lender restrictions, 344
anti-assignment, 363, 372
assignment, 363, 372, 374
collateral, as, 363–378
project development
cabotage, 153
communications, 139, 154
construction equipment, importation of, 139, 155
employees, 139, 156
expansion rights, 139, 155
export restrictions, 139, 156
import restrictions, 139, 156
infrastructure, 139, 153
land and air transportation, 139, 153
legislative approval, 139, 146
loans for project development, 276–302
local restrictions, 139, 156
milestones, 139, 155
natural resources, government owned, 139, 156
power, 139, 154
price regulation, 139, 156
product or service limitations, 139, 154
raw materials, 139, 155
social program support, 139, 155
waste disposal, 139, 154
water, 139, 154
water ports and harbors, 139, 154
withholding taxes on loan interest, 139, 157
project development agreement, 83–85
project finance
advantages, 8–12
asset-based finance, compared to, 7
balance sheet finance, compared to, 7
basic components, 3, 8
contracts, value as credit support, 209, 211
contrasted to other financing models, 3, 7
definition, 4
disadvantages, 12–13
economic efficiencies of, 3, 5
economic inefficiencies, 5–7
economic studies, 3, 21
examples of, 3–17
limited-recourse, 3, 5
nonrecourse, 3, 4
reliance on project revenues as credit support, 4, 209, 214
structured finance, 6
uses of, 3, 7
project participants
bondholders, 72
borrowing entity, 71
commercial lender, 72
construction lender, 27, 33
contractor, 27, 35, 73
equity investors, 27, 36
export and transit countries, 27, 36
financial advisor, 74
financing from, 276, 302
host country, 27, 36
host government, 74
insurers, 77
lawyers, 74
lender. See lender
multilateral and bilateral agencies, 27, 37
objectives, 27, 29
operator, 27, 35, 74
output purchaser, 27, 36, 73
permanent lender, 27, 34
project company, 71
rating agencies, 73
sponsor, 27, 33, 71
supplier, 27, 36, 73
technical experts, 74
technology owner, 27, 35
put option, 245, 251
guarantees, contrast to, 245, 251
regulatory put, 245, 251
receivables, pledge of, 246, 269
refineries, 3, 14
regional development banks, 276, 293
African Development Bank, 276, 293
American Development Bank, 276, 294
American Investment Corporation, 276, 295
Arab Bank for EConomic and Social Development, 276, 294
Asian Development Bank, 276, 294
European Bank for Reconstruction and Development, 276, 294
European Investment Bank, 276, 294
European Union, 276, 294
generally, 276, 293
Islamic Development Bank, 276, 295
Nordic Development Fund, 276, 295
Nordic Investment Bank, 276, 295
OPEC Fund for International Development, 276, 295
reinsurance, 363, 381
renegotiation of contracts, 22–23, 219–221
power sales agreement, 222, 232
renvoi, 404, 408
representations and warranties
asset ownership and liens, 121, 132
business organization, 121, 125
collateral, 122, 136
complete project, 122, 138
completion, 122, 136
compliance with laws, 122, 135
date made, 121, 124
debt, 122, 133
definition, 121, 122
enforceability, 121, 128
existing agreements, 121, 131
financial information, 121, 128
force majeure, 121, 132
full disclosure, 122, 137
generally, 121, 122
infrastructure, 122, 136
judgments and orders, 121, 131
litigation, 121, 130
materiality and knowledge limitations, 121, 124
operation of business, 121, 133
other project contracts, in, 122, 137
permits, 122, 134
power and authority, 121, 127
prior business activity, 122, 137
project assets and necessary assignments, 122, 133
project budget, 121, 129
project contracts, 122, 133
projections, 121, 129
purpose of, 121, 123
regulatory and legal status, 122, 134
role in project finance contracts, 121, 123
subsidiaries and ownership of securities, 121, 132
taxes, 122, 134
request for proposals (RFP), 139, 142
request for qualifications (RFQ), 141
requirements contract, 191
retainage, 164, 176
guarantee, 164, 176
liens, 164, 177
reulatory out, 223, 237
risks
building materials, 58, 61, 164, 168
capacity shortfalls, output and efficiency, 58, 64
change of law, 39, 49, 149, 188, 195, 222, 234
civil unrest, 39, 51
collateral security, 39, 52
commercial risks, generally, 59
completion delay, 58, 60
concessions and licenses, 39, 47
construction, 164–169
construction contract force mejeure, 58, 60
construction costs, 58, 60, 164, 166
construction of project-related facilities, 58, 62, 164, 168
contract enforcement, 209, 214
contract provision mismatch, 58, 66
contract repudiation, 39, 52
contract terms and defenses, 209, 211
contractor resources and experience, 58, 61, 164, 167
contracts, generally, 58, 66
coordination, construction contract, 164, 169
creditworthiness of participants, 58, 59
currency, 39–47
design engineering and construction, 27, 28
development, 27, 28, 37
economic projection and feasibility report inaccuracy, 58, 66
environmental, 58, 66
equity investment, illiquidity, 40, 56
excuses to performance, construction contract, 164, 168
expatriation, 39, 49
export prohibitions, 40, 56
expropriation, 39, 48
facility site, 58, 61
force majeure, 58, 65
force majeure in construction contract, 164, 167
freezing or blocking orders, 40, 56
interest rate, 58, 65
joint venture, 27, 38
law and legal systems, 39, 54
law, change of, 39–51
legal culture, 40, 56
management experience, 58, 65
market for product or service, 58, 63
mitigation of commercial risks, 68
off-take purchaser, creditworthiness, 58, 63
operating, 27, 29
operating expenses, 58, 64, 198, 199
operator experience, 58, 64
operator experience and resources, 198, 200
output and requirements contract, 209, 213
performance, 198, 199
performance guarantee, contractor, 164, 166
permits, 39, 47, 58, 65
political, 99, 163
political collapse and succession, 39, 51
political environment, 58, 65
political violence, 39, 51
preemption and priority in emergencies, 39, 52
price controls, 40, 56
raw materials and utilities, 58, 62, 164, 168, 198, 200
shortfalls in mineral reserves, 58, 62
sovereign immunity, 40, 56
sovereign risk, 39, 52
sponsor commitment, 58, 64
start-up, 27, 29
taxes, 39–51
technology, 58, 61
war, 39, 51
sanctity of contracts, 140–158
Dabhol power project, 219–221
retroactive laws, 209, 217
state sovereignty, 140, 158
U.S. law, 209, 216
Securities Exchange Act of, 1934 (U.S.), 392, 398
securitization, 276–305
benefits of, 276, 304
generally, 276, 304
structure of, 276, 305
sovereign guarantee, 246, 267
generally, 246, 267
government subordination, 246, 269
government-funded account, 246, 269
host government’s perspective, 139, 151
necessity of, 246, 268
pledge of receivables, 246, 269
sovereign ability to pay, 246, 268
World Bank, 246, 268
World Bank involvement, necessity of, 246, 268
sovereign immunity, 40, 56, 140–162
Foreign Sovereign Immunities Act of, 1976 (U.S.), 140, 159
generally, 140, 158
State Immunity Act of, 1978 (U.K.), 140, 162
sovereign risk, 39, 52
sports stadium projects, 3, 15
spot sales, 209, 211
State Immunity Act of, 1978 (U.K.), 140, 162
application of, 140, 162
exceptions to immunity, 140, 162
generally, 140, 162
storage facilities, 3, 14
structured project finance, 3, 5
subordinated debt, 276–301
conditions to funding, 276, 301
funding, 276, 300
generally, 276, 300
other indebtedness, 276, 301
payment blockage period, 276, 301
project contracts, amendment of, 276, 301
senior debt documents, amendment of, 276, 301
terms, 276, 300
subordination
host government, 246, 269
subrogation, waiver of, 363, 381
supplier, 27–36
Swedish International Development Authority, 276, 300
take-and-pay contract, 63, 82, 209, 210, 245, 251
take-or-pay contract, 209, 245, 250
tariffs
export, 39, 49
import, 39, 49
taxes
change of law, 39, 50
customs duties, 39, 50
implementation agreement, 139, 148
income, 39, 50
nondiscrimination, 39, 50
withholding taxes on loan interest, 139, 157
technology owner, 27–36
telecommunications projects, 3, 15
throughput contracts, 63
toll roads, 3, 14
tolling agreements, 63, 223, 242
trade embargo regulations, 392, 399
turnkey construction contract, 164, 171
U.S. Export-Import Bank, 276, 297
Uniform Commercial Code (U.S.)
2-615, 212–213
3-408, 373
9-318(4), 373
9-403, 212
9-404, 212
9-406, 373, 376, 377
9-408, 374
United Nations Commission on International Trade Law, Legislative Guide on Privately Financed Infrastructure Projects, 439–447
United States Export-Import Bank. See Export-Import Bank, United States
war. See risks, war
Washington Convention, 410
waste disposal projects, 3, 14
water projects, 3, 14
World Bank
benefits of participation by, 275–293
breach of undertaking by host government, 259
currency inconvertibility and currency transfer risks, 259
expropriation, 259
guarantees, availability of, 275, 291
guarantees, political risk, 245–259
guarantees, types of, 290
IDA credits, 275, 290
negative pledge, 275, 285
political risk mitigation, 276, 292
procurement policies, 276, 293, 419, 420
war, revolution and civil disobedience, 259
World Bank Group
debt in project financings, 275–290
guarantees in project financing, 275–292