The document summarizes the key financial and contractual structures and agreements involved in large-scale construction projects. It outlines the major parties and relationships in project finance arrangements. It then describes the typical sequence of contracts and legal instruments over the stages of project development, from initial feasibility studies through design, construction, and long-term agreements. It identifies some potential areas of ethical concern regarding international construction projects in developing countries.

1. Construction Project Financial and Contractual Structure An Independent Study Project Spring Semester 2007 Sakib Khan SEAS ’07 Advised by Professor Nicola Chiara

5. My Grand Diagram

6. Project Company Investors Equity Lenders Feasibility Study Pledges Local Government Permits Permissions Exceptions Obligations Intent to develop Organized Labor Union deal Engineers Environmental Impact Statement Completion Agreement Purchaser Product Guaranteed Sales Contract General Contractor Contracts Design Debt Profit GC financing Operator Input Supplier Off-taker Not studied: Collateral

7. Notes on Sequence A sketch of possible key documents over the development of a typical project

8. Stage 1: Financing the Project

19. Stage 2: Structuring the Project

24. Stage 3: Government Agreements, Concessions and Obligations

35. Stage 4: Design and Construction