Project and Infrastructure Financing
All and any of the export financing techniques dealt with so far could form a part of the financial package assembled to fund a project. Project financing involves structuring the financial aspects of an entire construction project, such as, for example, building and operating a toll bridge. Procurement of raw materials, plant and equipment which might involve importing them from elsewhere contributes only a limited part of the overall financing package. Other examples of projects might be the revamping and running of the water supply and waste treatment for a small town or a large city. Perhaps the project is to provide and run a public transport or telephone system for an entire country. The project may continue to operate over a number of years and even decades. The essence of the financing structure, however, is that the cash-flow derived by the project pays for its construction and operation. In other words it is revenue driven.
KeywordsCash Flow Infrastructure Project Financing Structure Equity Investor International Capital Market
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