Approximately $1.38 billion in debt and equity funding for the project was contributed at financial close in December 2007 and is still in place, invested in authorised investments with two major Australian banks.
The project agreement and related project documents establish clarity around the project company structure and control and project financing arrangements and provide the state with considerable rights and powers in the event that changes occur or are sought in these areas.
There is clear evidence that the state is actively monitoring the impact of the recent downturn in international financial markets on the project company and related companies. The project agreement and finance documents include important powers and protections for the state and the project's financiers. In short:
• The state has security over the project's assets in order to secure performance of Children's Health Partnership's (CHP) obligations under the project agreement. The security enables the state to appoint a receiver over all or part of the secured assets.
• The project's financiers hold, via a security trustee, a number of securities in relation to the project, including a fixed and floating charge over the assets of CHP.
The respective rights and priorities as between the state and the security trustee are set out in the financier direct deed.