Project Finance for Business Development

CHAPTER 4Project Financing ProcessesRoadmaps for Successful Financing

Project finance processes are a key project sponsor company asset because they help build the capabilities and required infrastructure to support the PFO and the project team. They also provide a common platform for project stakeholder communication, coordination, cooperation, and collaboration. In the context of project financing, processes are designed, ordered, and interconnected in ways that align project objectives with deliverable results. That is, they are procedures that ensure judicious expansion of project team time and financial sources in order to produce expected deliverables efficiently.

Good project finance processes are those that are clearly understood by the PFO and the project team and are efficient and measurable. They provide needed analyses and assessments in an effective manner, and make recommendations to decision makers. They are needed to deal with the complexity of developing and financing this type of deal and they introduce discipline in the project team's undertakings and activities. Well‐designed processes result in more reliable deliverables and are proven to be a major ingredient that increases the chances of project success. When project finance processes are consistently managed and executed well, they achieve superior results and may also lead to the project sponsor gaining a competitive advantage through project finance.

Project finance processes are the sequence of project ...