Newsletter-21

103 PUBLIC PRIVATE PARTNERSHIP (PPP) investor is a suitable substitute investor. If so, the Administration would execute another FDA with the suitable substitute investor and its funders under similar terms and provisions. Conclusion FDAs are significant for lenders since (i) they are the only agree- ments wherein the lenders and the Administration are counterparties, (ii) the lenders are protected for their losses, if the project company fails to fulfill its key obligations under the project, or if termination of the project agreement is threatened, and (iii) FDAs provide sub- stantial securities for lenders as compared to those granted within the security pack under the project. The allegations regarding the stand alone nature of FDAs from the legal fate of the project agreement, and the provisions of the FDAs regulated, accordingly, have not yet been tested by the Turkish courts. The parties may agree under an FDA, among others , the consents of the Administration for the security, step in and step out rights of the lenders and suitable substitute investor provisions.