• Whether the private partner has immediate access to the funds?

• Whether any pre-disbursement conditions are mentioned in the letter? If so, all the pre-disbursement conditions indicated in the letter should have been fulfilled.

As per the Sourcebook for PPPs in TEN-Transport from the European PPP Expertise Centre, the pre-disbursement conditions typically include:

• Permits and planning approvals secured;

• Key land acquisition steps achieved;

• Clarification of remaining design issues;

• Finalization and signing of any remaining key project and financing documents;

• All funding approvals in place.

Financial Close in cases of Funding only through Equity

In case of funding through only equity and grant, financial close would not involve executing financing agreements with lenders. Instead, to demonstrate the availability of funds, a board resolution from the project sponsors would be provided stating that their company has such funds available and is ready for disbursal for the project.