single purpose project
single-purpose project. A facility that is designed, built, and used for one reason only, such as to generate electricity. • This term most often refers to large, complex, expensive projects such as power plants, chemical-processing plants, mines, and toll roads. Projects of this type are often funded through project financing, in which a special-purpose entity is established to perform no function other than to develop, own, and operate the facility, the idea being to limit the number of the entity’s creditors and thus provide protection for the project’s lenders. See project financing under FINANCING; SPECIAL-PURPOSE ENTITY; BANKRUPTCY-REMOTE ENTITY.
