Completion

Completion

In the context of project financing, occurs after a Completion Test, when the project's cash flows become the primary method of repayment. Prior to completion, the primary source of repayment is usually from the sponsors or from the turnkey contractor.

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Completion

In project finance, the time at which a project has been finished, functions, and is generating enough revenue such that its cash flows become the primary way the project is repaying debt. Completion applies especially to construction and other infrastructure projects. For example, an oil company may build a series of oil pumps and finance the construction though bonds. Completion occurs when the oil pumps are completed and are working, and the cash flows generated by the oil are repaying the bonds. See also: Sales Completion, Physical Completion.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved