
This chapter reviews the factors behind the recent rapid growth of project finance
(cf. §2.1), its distinguishing features (cf. §2.2), and relationship with privatization
(cf. §2.3), and also with other forms of structured finance (cf. §2.4). Finally, the
benefits of using project finance are considered from the point of view of the vari-
ous project participants (cf. §2.5).
§2.1 DEVELOPMENT OF PROJECT FINANCE
The growth of project finance over the last 20 years has been driven mainly
by the worldwide process of deregulation of utilities and privatization of public-
sector capital investment. This has taken place both in the developed world as well
as dev ...