Project finance — Checklist for conditions precedent

Introductory note:
In a project finance transaction, facility agreements include specific conditions that need to be satisfied before funding will occur. These conditions are known as conditions precedent, or “CPs”.
Conditions precedent are included to provide the lender with a mechanism to ensure that:
	•	certain documentary matters are dealt with (documentary conditions precedent); and
	•	certain factual circumstances exist (factual conditions precedent)
before funds are made available to the borrower.
This checklist provides a list of the most usual conditions precedent that legal practitioners should consider including in a facility agreement for a project finance transaction.