Agreements on government guarantees have emerged as an extension of the approach that underlies the direct agreement of lenders. Guarantee agreements are concluded between the Authority and the contractors who enter into a contract with Projectco. The objective is that if projectco does not meet its contractual obligations during the construction phase, the support of Projectco`s corresponding mission can guarantee the completion of the project. In addition, the Authority may take over Projectco`s operating contract at the end of the project. EPC Direct Agreement The EPC contractor, the issuer and the security agent enter into a direct agreement on the EPC contract on the date of issue (direct EPC agreement). If necessary, a direct agreement may include clauses in which the consideration of the project document accepts the collection or transfer by the security of the rights of the project company, in accordance with the project document. A direct agreement is an agreement that gives the project`s funders direct rights to some of the project`s important documents. These rights are explained in direct agreements in project financing operations – turnkey provisions. In addition to the agreement of the counterparty who does not have the right to terminate if it has the right to do so in accordance with the project document, it will also accept that the intervention process may be initiated by lenders who respond to a notification of failure of the project company under the facility agreement, since the guarantee or acceleration of the loan is assured. Project sponsor: the person who plays an active role in the management of the project. The project sponsor owns Projectco and obtains profits, either through Projectco`s ownership or through management contracts, if the project is successful. The proponent often has to cover certain project liabilities or risks through bonds or management or service contracts.

In addition to this guarantee, project lenders generally expect direct contractual relationships with counterparties with key project documents.