ABSTRACT
This chapter describes some of the questions faced by project sponsors in preparing a team to develop and operate a proposed project. Sponsors must push beyond fascination with the possibilities of the project: they must pull together sources of financing, technology, and adequate management capability. Project sponsors typically spend a long time studying the extent of potential risks during the developmental and operational stages. The chapter discusses some general notions about how prospective participants decide whether and how to work together. The Japanese are far more flexible than US companies in varying their equity posture. The US equity share per participant in the consortia to which they belong is generally higher than for the average Japanese participant. Striking the right balance between equity and contractual commitments; between local and foreign companies in the partnership; between syndicating and assuming responsibility can impact the final outcome of the project.
