Under project financing for highways (PPP), the typical

Lenders secure project cash flows and assets step-in rights allow sponsor replacement on default.

security for lenders may include:

A Hypothecation of cash flows, assignment of receivables, pledge of project accounts, step-in rights Correct Answer Incorrect Answer

B Only personal guarantee of employees Correct Answer Incorrect Answer

C Equity shares of unrelated companies Correct Answer Incorrect Answer

D Off-balance sheet guarantees only Correct Answer Incorrect Answer

E No security required Correct Answer Incorrect Answer

Solution

Lenders secure project cash flows and assets; step-in rights allow sponsor replacement on default.

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