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For that reason, parties take substantial challenges through the construction section. The sole income stream during this phase is usually underneath an offtake arrangement or electricity purchase agreement.
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This minimizes the project’s influence on the cost of the shareholders’ current financial debt and personal debt ability. The shareholders are cost-free to utilize their personal debt ability for other investments.
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Not all infrastructure investments are funded with project finance. Several corporations challenge traditional personal debt or equity in order to undertake these projects.
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