In Project Finance, the "Cash Flow Waterfall" is the mechanical priority system for distributing project revenues. This document analyzes the technical hierarchy of payments, which is strictly governed by the Common Terms Agreement (CTA).

Revenues first cover operating expenses (OpEx), followed by senior debt service (interest and principal). Only after meeting "Debt Service Reserve Account" (DSRA) requirements and passing specific financial covenants—primarily the Debt Service Coverage Ratio (DSCR)—can excess cash be distributed as dividends to equity holders. The document provides the mathematical modeling for DSCR ($DSCR = CFADS / \text{Debt Service}$), where $CFADS$ is the Cash Flow Available for Debt Service.