June 2002
Beginner
344 pages
11h 7m
English
Content preview from Principles of Project Finance
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Contracts have gone through proper procedures to sign these contracts, (2) all nec-
essary legal requirements have been fulfilled to undertake the project, and (3) ap-
propriate tax and accounting assumptions are being used.
It should be noted that the classification of commercial risks set out in the re-
mainder of this chapter is inevitably only a guide to the issues that may have to be
considered in any particular case, as each project has its own characteristics.
§8.4 COMMERCIAL VIABILITY
The first step in due diligence for any project is to consider its basic com-
mercial viability (i.e., is there a sound market for the product or service provided
by the Project Company?). This initial question has nothing to do with the terms
of any contracts signed ...
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