Criteria for Successful Project Financing

Carmel F. de Nahlik and Frank J Fabozzi

Chapter 4 in Project Financing:Analyzing and Structuring Projects, 2021, pp 67-101 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The following sections are included:IntroductionRisk PhasesEngineering and/or Construction PhaseStart-up PhaseOperations According to SpecificationDifferent Lenders for Different Risk PeriodsReview of Criteria for Successful Project FinancingCredit Risk Rather Than Equity Risk is InvolvedFeasibility Study and Financial ProjectionsAssuring the Cost of Supplies and Raw MaterialsEnergy Supplies Assured at a Reasonable CostA Market Exists for the Product, Commodity or ServiceTransportation of Product to MarketAdequate CommunicationsAvailability of Building MaterialsExperienced and Reliable ContractorExperienced and Reliable OperatorManagement PersonnelNo New TechnologyContractual Agreements Among Joint Venture PartnersPolitical Environment, Licenses and PermitsNo Risk of ExpropriationCountry RiskSovereign RiskCurrency and Foreign Exchange RiskAdequate Equity Contribution and ReturnThe Project as CollateralSatisfactory Appraisals of the Assets and ResourcesAdequate Insurance CoverageForce Majeure RiskDelay RisksCost Overrun RisksAdequate Return MeasuresRealistic Inflation Rate AssumptionsRealistic Interest Rate AssumptionsEnvironmental RisksForeign Corrupt Practices Act and Other Similar LegislationProtection Systems against Kidnapping and ExtortionCommercial Legal System to Protect Property and RightsCase Study: Acacia Mining

Keywords: Project Financing; Development Banks; Structured Finance; Infrastructure; Infrastructure Investment; Financial Modeling; Credit Risk; Public Private Partnerships; Corporate Restructuring; Governance; Economic Public Policy; Enivronmental Public Policy; Communication Public Policy (search for similar items in EconPapers)
JEL-codes: F3 G3 G32 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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