Bankability of a public private partnership in agricultural sector: A project in Sub Saharan Africa

Donato Morea and Marino Balzarini
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Donato Morea: Faculty of Economics, Universitas Mercatorum, Rome, Italy
Marino Balzarini: IRD Engineering S.r.l., Rome, Italy

Agricultural Economics, 2019, vol. 65, issue 5, 212-222

Abstract: A public private partnership can be an effective approach to deal the projects with modern agricultural development in Sub Saharan Africa. A former financial analysis of a development project, carried out by the authors, showed that public and private partners can effectively join in a mutually satisfactory venture capital. The same project is now complemented with a bankability study, considering lenders options, equity allocation, collaterals and likely applicable interest rates, available cash flow and sustainable debt service repayment to provide a through financing scenario for each partner's perspective assessing the relevant Debt Service and Loan Life Cover Ratios. Cash flow and interest rates fluctuation impacts are eventually investigated with a sensitivity analysis to prove the robustness of the proposed scenario.

Keywords: financiability analysis; modern agricultural development projects; project financing (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:caa:jnlage:v:65:y:2019:i:5:id:258-2018-agricecon

DOI: 10.17221/258/2018-AGRICECON

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