their financial commitment to the project (cf. §8.5.3). Similarly, the Offtaker or
end-user of the project’s products or services will want to ensure that it will be
properly developed, financed, and operated, and the Offtaker or end user will
therefore be concerned that the Sponsors can provide this technical and financial
expertise to the project company (cf. §8.8.8).
In summary, a project that looks viable but does not have credible Sponsors—
even if the project finance is nonrecourse—will probably not get financed. (The
Sponsors’ financial credibility is also of importance because they may have to fill
up any gaps in the project risk by providing limited-recourse guarantees, as dis-
cussed in §8.12.)
§4.2 PROJECT DEVELOPMENT
Like any other activity in project ...