Cash management and project accounts in a project finance transaction | Practical Law

Cash management and project accounts in a project finance transaction | Practical Law

This note considers the importance of cash management in structuring and implementing capital intensive projects on a project finance basis. It examines the purpose and use of a revenue account, a debt service reserve account, a proceeds account, an operating account, a maintenance reserve account, a compensation account and a distribution account. In addition, this note also looks at a typical priority of payments or "waterfall" provision for monitoring the appropriate application of project revenues.

Cash management and project accounts in a project finance transaction

Practical Law UK Practice Note w-010-6658 (Approx. 14 pages)

Cash management and project accounts in a project finance transaction

MaintainedEngland, Wales
This note considers the importance of cash management in structuring and implementing capital intensive projects on a project finance basis. It examines the purpose and use of a revenue account, a debt service reserve account, a proceeds account, an operating account, a maintenance reserve account, a compensation account and a distribution account. In addition, this note also looks at a typical priority of payments or "waterfall" provision for monitoring the appropriate application of project revenues.