Legal Definitions - single-purpose project

A single-purpose project refers to a large-scale facility or infrastructure development that is designed, constructed, and operated for one specific function or objective only. These projects are typically complex and expensive, and their entire existence is dedicated to achieving that singular goal.

Often, to manage financial risks and attract investment, a separate legal entity is created solely to develop, own, and operate this specific project. This approach helps to isolate the project's finances and liabilities from other ventures, providing greater security for lenders and investors who are funding the project.

• Example 1: A Large-Scale Desalination Plant

  Imagine a massive facility built on a coastal desert specifically to convert seawater into fresh, potable drinking water for a growing city. This plant is a single-purpose project because its entire design, construction, and operation are dedicated exclusively to the process of desalination. It doesn't generate electricity for the grid, process chemicals, or serve any other function; its sole reason for existence is to produce fresh water.

• Example 2: A Dedicated Freight Rail Line

  Consider a new, extensive railway line constructed solely to transport iron ore from a remote mine to a specific port for export. This rail line is a single-purpose project because it is engineered and used exclusively for the bulk transport of this particular commodity. It is not designed for passenger travel, general freight, or any other type of rail service, making its function singular and focused.

• Example 3: A Specialized Data Center for Cloud Services

  Picture a vast, secure complex built in a remote location, equipped with advanced cooling systems and redundant power, whose only function is to house servers and provide infrastructure for a major cloud computing provider. This facility is a single-purpose project because it is designed, built, and operated exclusively for data storage, processing, and network connectivity for cloud services. It does not serve as an office building, a manufacturing plant, or any other type of commercial enterprise.