NATIONAL UNIVERSITY OF SINGAPORE
PM5115 PROJECT FINANCE CONTRACTS AND AGREEMENTS
Semester 2, AY2015/2016
Time Allowed: 2 Hours
INSTRUCTIONS TO CANDIDATES
1. Candidates must attempt ALL questions.
2. Where appropriate, candidates should support their answers with reference to
decided cases and statutes.
3. Where cases are referred to in the answers, they should be underlined.
INFORMATION TO CANDIDATES
1. This examination paper contains THREE questions and comprises TWO printed
pages.
2. The total mark for this paper is 60.
3. This is an OPEN BOOK examination.
4. The examiner for this module is Associate Professor Chan Chuen Fye, Philip
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PM5115 Project Finance Contracts and Agreements
Page 2
Question 1 (20 marks)
(a) Discuss the court’s approach to the risk allocation arrangements in a contract.
(10 marks)
(b) Discuss the effectiveness of an indemnity clause in allocating risk of escalating
transaction cost to the borrower in a loan contract.
(10 marks)
Question 2 (20 marks)
As part of risk management, the lender would require the borrower to provide the lender
some form of security. With the support of court judgments, discuss whether such an
arrangement is an effective form of risks control.
Question 1 (20 marks)
Discuss whether there are merits to the claim that the exclusive jurisdiction clause could
be used as effective risk management of the escalation of the transaction cost in the
event of a dispute that requires resolution in court.
END OF PAPER