Chapter 2

What is Project Finance?

This chapter reviews the basic features of project finance (§2.2), the factors behind its development (§2.3) and the ‘building blocks’ of a project-finance structure (§2.4), with examples (§2.5). The benefits of using project finance are then considered from the point of view of the various project participants (§2.6).

Keywords:

project finance; independent power projects; public-private partnership; concession; project company

§2.1 Introduction

This chapter reviews the basic features of project finance (§2.2), the factors behind its development (§2.3) and the ‘building blocks’ of a project-finance structure (§2.4), with examples (§2.5).

The benefits of using project finance are then considered from the point ...

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