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The suitable order agreements among The federal government companies as well as project may well consist of clauses guaranteeing a minimum amount offtake and thus assure a specific volume of revenues. In other sectors such as street transportation, the government may well toll the roads and obtain the revenues, although giving a assured once-a-year sum (as well as Obviously specified upside and draw back situations) towards the project. This serves to minimise or eradicate the threats associated with site visitors demand from customers for that project traders along with the lenders.
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By participating in a project finance venture, Each individual project sponsor pursues a transparent aim, which differs with regards to the style of sponsor. Briefly, 4 forms of sponsors are fairly often associated with these types of transactions:
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