3.2  PPP contract and financial close

The finalisation of the PPP arrangements, leading to commercial and financial close, involves a series of steps summarised in the chart below. The activities involved in these steps often deal with detailed fine-tuning matters. Close interaction between the Authority, the PPP Company, its sponsors and its financiers is essential. This stage requires thorough organisation and management for it to proceed efficiently. It should be planned carefully, generally making use of experienced advisers. Many PPP projects have experienced lasting difficulties as a result of a lack of adequate planning or expert advice during this critical stage.