QUESTION $4$

$($a$)$ Define political risks in project finance and explain the different forms it may take $(5$

marks$)$

$($b$)$List and explain the pre$-$completion and post$-$completion stage risks associated with

project financing

$($c$)$ Explain project leasing, how it is done and its advantages in project financing $(6$

marks$)$

$($d$)$ Explain the meaning and uses of the following contracts:

$($i$)$ Off$-$take agreement $(2$ marks$)$

$($ii$)$ Put$-$or$-$pay agreement $(2$ marks$)$

$($iii$)$ Turn$-$key contract $(2$ marks$)$

$($iv$)$The project concession $(2$ marks$)$

QUestion $5$

The following documents are vital in a standard project finance deal.

$($i$)$ Pre$-$development agreements

$($ii$)$ Shareholders agreement $/$ joint venture agreement

$($iii$)$ Sponsors$/$ shareholders support agreement

$($iv$)$ Project loan agreement

$($v$)$ Security documents

Required:

Explain each of the above documents and explain issues it deals with