This diagram shows the key parties and contracts involved in a typical PPP Project. The Contracting Authority contracts with the Private Partner through the PPP Contract and also enters into a separate "Direct Agreement" with the Lenders (see Section 6, Lenders' Step-in Rights). The Lenders provide funding to the Private Partner and take security over the Private Partner's assets for the repayment of such funding. The Lenders also enter into Direct Agreements with the Construction Contractor and Operating and Maintenance Contractor typically retained by the Private Partner to build and operate the project as required under the PPP Contract. The Shareholders/Equity Investors own the Private Partner, providing funding to it by means of equity and shareholder loans (the repayment of which is subordinated to the Lenders' funding).

TYPICAL PPP STRUCTURE