Independent Trustees and Controlled Accounts in PPP Structures
Why third-party cash control underpins lender confidence.
Executive Summary
Independent trustees provide enforceable control over project cashflows, ensuring that agreed payment waterfalls operate without political or operational interference.
Core Principle
Creditor confidence depends on control, not assurances.
Control Architecture
- Independent receivables trustee
- Segregated collection and operating accounts
- Automated waterfall execution
- Transparent reporting
Integrity Standard
Account control mechanisms must be auditable and insulated from discretion.
References
- IFC (2018) – PPP Transaction Structuring
- World Bank (2017) – Credit Enhancement in Infrastructure Finance