The contractual arrangements specific to any particular project can be designed so as to allocate the project risks among the various parties to the project according to their respective risk tolerances. In complex projects that involve several parties, a number of contracts may be interwoven to provide the security arrangements. Figure 4.2 shows the principal contractual arrangements that support the financing for the Cogeneration Project. The nexus of contracts is designed, ultimately, to allocate the economic benefits of the project in a manner commensurate with the allocation of project risks. These contractual arrangements furnish the credit support network necessary to arrange debt financing and passive equity financing.