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As outlined earlier mentioned, the funding of a PPP project is composed principally of senior debt and fairness (which can in some cases be in the shape of junior shareholder loans).

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The financing framework may include things like other forms of junior personal debt (such as “mezzanine” credit card debt, which ranks between senior debt and pure fairness) and in some instances grant funding.

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Hence, the lenders’ recourse is restricted mostly or completely for the project’s belongings, together with completion and general performance ensures and bonds, in the event the project corporation defaults.