Financial closure, or financial close, is a critical stage in project development, particularly in large-scale initiatives like Public-Private Partnerships (PPPs).
Based on the provided information (dated 22-Oct-2024), financial close occurs when specific conditions and agreements are finalized, enabling the project to proceed with funding.
The key elements defining financial closure, according to the reference, are:
- Signing of Agreements: All project agreements and financing agreements have been formally signed by the relevant parties.
- Conditions Met: All conditions precedent outlined in these signed agreements have been successfully met.
- Financing Accessibility: The private party involved in the project (such as a PPP) is able to begin drawing down the committed financing.
Achieving these milestones signifies that the necessary contractual and financial foundations are in place for the project work to commence, using the secured funds.
