Project Finance for Business Development

CHAPTER 5Project Finance OrganizationsBuilt for Competitive Advantage

The project team, the interweaving contract structure, and project and financing structures are key elements in project finance value creation. But, they do not happen in a vacuum instantaneously and do not come into existence on their own. They are developed over time in order to implement a project finance transaction successfully. Project finance organizations (PFOs) are part of the project team and are created to help the sponsor company's project manager manage information needs and flows, perform assessments and evaluate projects, and develop the right financing structures. Large firms in the infrastructure project business that specialize in project development, building, and financing have dedicated PFOs. Smaller companies usually assemble teams on an as‐needed basis by drawing from internal disciplines and external advisors, or they outsource project financing in its entirety.

A key objective of PFOs is to ensure that efficient and effective project finance solutions are developed for customers and expected project value materializes according to project objectives and plans. Another key objective is to protect and advance the company's interests and image and ensure a coordinated and efficient management of company resources. The difference between dedicated, fulltime PFOs and ad‐hoc PFOs is in the skills and qualifications, their commitment to project success, their standing with customers and funding ...