Equity documents are the obligation for sponsors and project owners to make equity contributions to the project company in different circumstances. Core capital agreements cover cost overruns and provide for the minimum capital required to maintain the debt ratio set by lenders. A project company seeking tax fairness is often able to enter into either a buy and sell membership agreement (MIPA) or an equity investment agreement (ECCA) with a private equity tax investor. Tax private equity investors generally do not assume construction risks and their investment depends on the satisfaction of a number of requirements, including the assumption that the project has achieved or is to be completed under the acquisition agreement and that it is subject to performance compliance and other audit requirements in the corresponding work contracts. In the case of ITC transactions, it is important that the equity tax investor becomes the owner before a project is commissioned and used for commercial purposes. A revised form of limited liability social agreement for the project company is negotiated at the time of the implementation of MIPA or ECCA to regulate the relative rights and obligations between the developer and the equity tax investor, to define the respective cash endowments, distributions and tax benefits, as well as the governance rights before and after the date the tax investor obtained his net economic return. investments. The Flip Partnership Structure is a popular financing tool for wind projects, for which developers cannot take full advantage of the tax advantages available. As mentioned above, tax equity investors who are directly or indirectly part of the project company can benefit from the tax credits, given the choice of thought available to LCs. For projects under construction, a tax investor will enter into a participation agreement that commits to acquiring a stake in a project company at the time of completion of the project and commissioning, and the proceeds of the equity contribution will be used to repay the construction debt.
One of the variants of the Flip structure of the partnership is the pay-as-you-go structure (PAYGO), in which the tax private equity investor contributes about half of the initial equity required under a traditional flip-partnership agreement and, during the operational life of the project, it will make regular payments for the remaining equity that would have been required under a traditional Flip partnership transaction. The PAYGO structure allows a tax equity investor to defer the timing of equity contributions and links his contributions to the number of PTCs actually generated (and not projected). The ECAA agreement is a multilateral agreement signed on 9 June 2006. It came into force on December 1, 2017. This is an important step towards closer and deeper integration of all Western Balkan countries into European airspace, which will further improve growth, connectivity and competitiveness for all of us. However, it should be noted that an applicant cannot be subject to the Ankara Agreement if the Ministry of the Interior claims to have committed fraud. In today`s hostile climate, policymakers regularly try to use the “fraud exception” to reject an ECAA application. The aim of this agreement is to create a common European airspace (ECEA) that will integrate the EU`s neighbours in South-Eastern Europe into the EU`s internal aviation market, made up of EU member states, Norway and Iceland. The ECAA agreement is expected to bring significant economic benefits to passengers and the airline industry, which includes 36 countries and more than 500 million people, by creating a single aviation market.