The basic terms of a loan agreement include the following provisions. There is a supply contract between the project company and the supplier of the necessary raw material/fuel. An operating and maintenance agreement (O-M) is an agreement between the project company and the operator. The project company delegates the management of the operation, maintenance and often the performance of the project to a serious operator with industry expertise under the O-M agreement. The operator could be one of the sponsors of the project company or a third-party supplier. In other cases, the project company can operate and maintain the project itself and, finally, provide technical assistance to an experienced company under a technical assistance agreement. The basic content of an O-M contract is the key to the agreement on common terms for project financing scenarios. The CTA protects both parties from future legal issues. The agreement between the lender and the borrower describes the reciprocal and common terms. A detailed explanation of the financial instruments and the relationship between the various instruments is necessary for both parties in order to avoid future disputes or disputes.

An agreement on common terms is a two-party legal transaction. One party is applying for financial assistance or a loan for a given project, and the other party is providing that financial assistance. The CTA ensures that the agreement between the borrower and the lender has been reached. The second part may be a financial institution. This agreement includes the provision for repayment and the cost of acquiring debts. Both parties agree with the clauses mentioned in the ICC with respect to the project account, conditions, voting rights in relation to the amendments, etc. The Common Terms Agreement simplifies the clause and highlights the essential conditions for obtaining and paying for subsidies. It helps both parties to understand the points and take these points into account before reaching an agreement.

The CTA outlines the main conditions and factors and, if both parties agree to the above terms, they sign the contract accordingly. As a general rule, financiers require that a direct relationship be established between itself and the contracting party, obtained through the application of a tripartite act (sometimes called an act of approval, direct agreement or ancillary agreement). The trilateral act describes the circumstances under which financiers can „intervene“ in project contracts to nullify a possible default. Project financing is the long-term financing of infrastructure and industry projects based on projected projected cash flows from the project, not the sponsors` balance sheet. Typically, a project financing structure includes a number of equity investors known as „sponsors“ and a „union“ of banks or other credit institutions that provide loans for the transaction.