Principles of Project Finance

The second edition of this best-selling introduction for practitioners uses new material and updates to describe the changing environment for project finance. Integrating recent developments in credit markets with revised insights into making project finance deals, the second edition offers a balanced view of project financing by combining legal, contractual, scheduling, and other subjects. Its emphasis on concepts and techniques makes it critical for those who want to succeed in financing large projects. With extensive cross-references, a comprehensive glossary, and online spreadsheets that follow its chapters, this new edition presents a new guide to the principles and practical issues that can commonly cause difficulties in commercial and financial negotiations. * Provides a basic introduction to project finance and its relationship with other financing techniques * Describes and explains: + sources of project finance + typical commercial contracts (__e.g.,__ for construction of the project and sale of its product or services) and their effects on project-finance structures + project-finance risk assessment from the points of view of lenders, investors, and other project parties + how lenders and investors evaluate the risks and returns on a project + the rôle of the public sector in public-private partnerships and other privately-financed infrastructure projects + how all these issues are dealt with in the financing agreements

The second edition of this best-selling introduction for practitioners uses new material and updates to describe the changing environment for project finance. Integrating recent developments in credit markets with revised insights into making project finance deals, the second edition offers a balanced view of project financing by combining legal, contractual, scheduling, and other subjects. Its emphasis on concepts and techniques makes it critical for those who want to succeed in financing large projects. With extensive cross-references, a comprehensive glossary, and online spreadsheets that follow its chapters, this new edition presents a new guide to the principles and practical issues that can commonly cause difficulties in commercial and financial negotiations.

• Provides a basic introduction to project finance and its relationship with other financing techniques
• Describes and explains:


• sources of project finance
• typical commercial contracts (e.g., for construction of the project and sale of its product or services) and their effects on project-finance structures
• project-finance risk assessment from the points of view of lenders, investors, and other project parties
• how lenders and investors evaluate the risks and returns on a project
• the rôle of the public sector in public-private partnerships and other privately-financed infrastructure projects
• how all these issues are dealt with in the financing agreements

The Second Edition of this best-selling introduction for practitioners uses new material and updates to describe the changing environment for project finance. Integrating recent developments in credit markets with revised insights into making project finance deals, the second edition offers a balanced view of project financing by combining legal, contractual, scheduling, and other subjects. Its emphasis on concepts and techniques makes it critical for those who want to succeed in financing large projects. With extensive cross-references and a comprehensive glossary, the Second Edition presents anew a guide to the principles and practical issues that can commonly cause difficulties in commercial and financial negotiations. Provides a basic introduction to project finance and its relationship with other financing techniques Describes and explains: sources of project finance; typical commercial contracts (e.g., for construction of the project and sale of its product or services) and their effects on project-finance structures; project-finance risk assessment from the points of view of lenders, investors, and other project parties; how lenders and investors evaluate the risks and returns on a project; the rôle of the public sector in public-private partnerships and other privately-financed infrastructure projects; how all these issues are dealt with in the financing agreements Project finance is a method of raising long-term debt financing for major projects through "financial engineering," based on lending against the cash flow generated by the project alone; it depends on a detailed evaluation of a project's construction, operating and revenue risks, and their allocation between investors, lenders, and other parties through contractual and other arrangements.