ABSTRACT
Project financing may relate to a private project or a project in which a government or a government-sponsored body may be involved. This chapter is concerned with the technique of raising finance in respect of private projects and some of the important legal issues pertaining to project finance. Some aspects of project financing share common elements with syndicated loan arrangements, but it is thought appropriate to discuss project financing in a separate chapter as it has own features and a negotiator is required to be familiar with them. Finance may be raised from capital markets or from international institutions, such as the World Bank Group. This chapter concentrates on private project financing, although it must be pointed out that mixed financing is also possible. Incidentally, regional development banks have also developed their own project financing system. Project financing always entails risks; risk-minimisation is therefore one of the crucial issues that deserves the serious attention of the prospective lenders.
