Project finance — Checklist for operation and maintenance contract

Introductory note:
The project company will typically enter into an operation and maintenance (O&M) contract with an operator (the O&M contractor) to provide operation and/or maintenance services.
The purpose of an O&M contract is to:
	•	allocate operating risk to the party best placed to bear it, that is, the O&M contractor;
	•	ensure that there are clear criteria for assessing the performance of the project and that targets, if met, will generate adequate revenues for the project company; and
	•	manage operating and maintenance costs.
This checklist is a good starting point for key issues that should be addressed by the provisions in an O&M contract.