A guidebook on public-private partnership in infrastructure

E. PROJECT CONSTRUCTION 
The project construction phase begins after the financial close. This is the 
phase during which the project finance is drawn down and the EPC contractor and 
subcontractors engaged by the private party/SPV start construction, testing and 
commissioning of the different components of the project according to an 
implementation schedule. 
The major responsibility related to the implementation tasks in this phase lies 
with the private party. However, a management process by the implementing agency 
needs to be in place from the outset to ensure timely completion and satisfactory 
operation of the project.
The implementing agency and its Project Director oversee the tasks related to 
project construction and its commissioning. The Project Director and his/her team: 
• Take steps in resolving differences in the interpretation of tender 
conditions; 
33.
Financial close means the date on which the financing documents in respect of financial assistance for the 
project to be provided by the lenders (by way of loans, advances, subscription to debentures and other debt 
instruments, guarantees, etc.) have become effective and the concessionaire has immediate access to such 
funding. 

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A Guidebook on Public-Private Partnership in Infrastructure 
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• Monitor the progress of project delivery and quality of work; 
• Oversee the conduct of required tests, evaluate the test results and take 
decisions as required; 
• Consider variations in the contract; 
• Inspect equipment to be installed; and 
• Certify and provide approvals as may be needed under the contract.
The Project Director may also have responsibilities related to resolution of 
various implementation issues discussed in Section B of this chapter.
The construction phase ends with the certification of the employed 
independent engineer and successful commissioning of the project. The end of this 
process marks with what is known as the commercial operation date (COD), and the 
project starts delivering the contracted services. 

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A Guidebook on Public-Private Partnership in Infrastructure