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The Project Finance Loan Agreement is a crucial document used in Pakistan for financing large-scale infrastructure and industrial projects where the loan is primarily secured by the project's assets and cash flows. This agreement is essential when implementing project finance structures in Pakistan, requiring careful consideration of local laws including the Contract Act 1872, Banking Companies Ordinance 1962, and Foreign Exchange Regulation Act 1947. It contains comprehensive provisions covering facility terms, security arrangements, project implementation requirements, and monitoring mechanisms, while ensuring compliance with Pakistani regulatory requirements. The document is particularly important for projects involving international lenders, requiring specific provisions for foreign exchange regulations and cross-border security arrangements. It typically forms part of a larger suite of project finance documents and must be structured to accommodate both conventional and, where required, Islamic finance principles under Pakistani law.

1. Parties: Identification of the lender(s), borrower(s), and any guarantors or security providers

2. Background: Description of the project, purpose of the facility, and context of the financing

3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement and interpretation rules

4. The Facility: Details of the loan amount, purpose, and any tranching arrangements

5. Conditions Precedent: Conditions that must be satisfied before drawdown, including project-specific requirements

6. Drawdown: Procedures and requirements for utilizing the facility

7. Repayment and Prepayment: Terms of repayment, prepayment rights and obligations

8. Interest and Fees: Interest calculation, payment provisions, and applicable fees

9. Tax Provisions: Tax-related obligations and gross-up provisions

10. Representations and Warranties: Standard and project-specific representations and warranties

11. Information Covenants: Reporting requirements including project-specific information

12. Financial Covenants: Financial ratios and tests applicable to the project

13. General Covenants: Positive and negative undertakings related to the project and borrower

14. Project Covenants: Specific undertakings related to project construction, operation and maintenance

15. Events of Default: Default triggers and consequences

16. Security: Overview of security package and enforcement rights

17. Changes to Parties: Transfer and assignment provisions

18. Administration: Administrative provisions including calculations and notices

19. Governing Law and Jurisdiction: Choice of law and dispute resolution provisions