Risk Analysis Paramount in Project Financing Decisions

摘要

he project finance model is used to mobilize several billion dollars of investment annually for projects worldwide. Making these projects an attractive investment opportunity to lenders requires a careful assessment of the risks involved in a project. However, to those unfamiliar with the project finance model, the approach can seem like a complex, time-consuming, and costly means to finance a new endeavor. Complaints from sponsors about project financing are legion. There is a familiar refrain: implementing the cumbersome structure that lenders want to finance a project will come with significant delays and cost, and, at the end of the day, the lender will not be taking any risk.