Principles of Project Finance

management structure until a late stage, as the Sponsors’ staff will be doing the

project development work. There is, however, only a limited overlap between the

skills needed at this development stage and those needed once the Project Com-

pany is set up and the project itself is under way, and arrangements must be made

to ensure a smooth transition between the two phases of the project.

Sponsors are generally well organized in ensuring that all the engineering and

construction management expertise is in place when the project begins, but some-

times they neglect the finance side of the Project Company’s organization. The

new Project Company needs to have in place a finance director and an accounting

department who have an immediate grasp of the complex ...