Question 8 Which of the following will govern the relationship between the special purpose vehicle and the principal (e.g. host government)? a) Concession agreement b) Performance bond c) Loan agreement d) Shareholders agreement Question 9 In a project finance arrangement, which of the following financial instruments has the greatest claim over the cash flows and assets of the special purpose vehicle a) Debt finance b) Equity c) Bond d) Preference shares Question 10 Non-recourse funding in project finance implies that the lenders to the project have limited claim over the assets of the sponsors of the project. a) True b) False Question 11 Professional indemnity insurance is typically provided by which of the following? a) Consultants and designers on a project b) Constructor c) Operator d) User Question 12 A project finance bond with a lower rating is likely to have a higher cost of interest. a) True b) False Question 13 A guarantee provided to safeguard against poor performance by constructor is called? a) Contractors all risk insurance b) Operators all risk insurance c) Retention bond d) Performance bond