Infrastructure Project Finance and Capital Flows: A New Perspective

1999 ◽  
Author(s):  
Danny Leipziger ◽  
Mansoor Dailami
Keyword(s):  
Capital Flows ◽  
Project Finance ◽  
Infrastructure Project ◽  
New Perspective

Infrastructure project finance and capital flows: A new perspective

1998 ◽  
Vol 26 (7) ◽  
pp. 1283-1298 ◽  
Author(s):  
Mansoor Dailami ◽  
Danny Leipziger
Keyword(s):  
Capital Flows ◽  
Project Finance ◽  
Infrastructure Project ◽  
New Perspective

Mitigating Legal Risks in Nigeria's Project Finance Market

2017 ◽  
Vol 25 (3) ◽  
pp. 442-455
Author(s):  
Olufemi Soyeju
Keyword(s):  
Debt Financing ◽  
Project Finance ◽  
Infrastructure Development ◽  
Public Infrastructure ◽  
The Public ◽  
Fund Development ◽  
Legal Risks ◽  
Project Risks ◽  
Infrastructure Project

Project finance is a subset of financial techniques used traditionally in raising long-term debt financing for projects particularly in the energy and mining sectors of the economy. However, over the years, it has proved helpful in raising the required funds to drive public infrastructure projects through the public private partnership framework. By its nature, project finance is either non-recourse, or of limited recourse, to the project sponsors and hence identifying the various risks and determining who should bear these risks is the overarching essence of project finance technique. These uncertainty and risks may have significant impact on outturn costs or benefits of a particular infrastructure project. Generally, typical project finance transaction is fraught with many project risks which sometimes overlap. However, among these inherent risks there are some that are legal in nature and hence they are referred to as legal risks. So, this article seeks to interrogate the related legal risks in project finance as a financing technique to fund development of infrastructure and in particular, the procurement of critical public infrastructure assets in Nigeria and the various ways by which these risks can be mitigated to drive infrastructure development in the country.

Turning Around Distressed Project Finance Assets in India: What More Needs to Be Done?

2018 ◽  
Keyword(s):  
Cash Flows ◽  
Project Finance ◽  
Cost Of Debt ◽  
Risk Allocation ◽  
Debt Overhang ◽  
Balance Sheets ◽  
Infrastructure Project ◽  
Bankruptcy Code ◽  
The Cost ◽  
Future Cash Flows

With the Insolvency and Bankruptcy Code firmly in place, India’s distressed project finance assets are turning out to be attractive to institutional investors. Project finance assets need asset-and deal-specific financing solutions in order to achieve successful turnarounds. The turnaround solution must ensure optimum risk allocation and mitigation leading to the buildup of future cash flows. This will, in turn, lead to deleveraging of stressed balance sheets. The authors present a conceptual model and argue that even now the political and regulatory risks for infrastructure project loans in India have not been completely mitigated. This has resulted in a situation of a debt overhang, wherein even economically viable projects may not attract fresh funding. To address this, the article suggests the possible use of priority funding structures, where existing lenders cede charge of the assets in favor of a new lender as a way to reduce the cost of debt and unlock shareholder value. This solution will also ensure that the restructuring package is properly priced (from the project finance lender’s perspective), resulting in the efficiency and viability of the restructured asset.

Innovation in Infrastructure Project Finance: A Typology for Conceptualization

2014 ◽  
Vol 6 (3) ◽  
pp. 127-144 ◽  
Author(s):  
Ali Mostafavi ◽  
Dulcy Abraham ◽  
Joseph Sinfield
Keyword(s):  
Risk Mitigation ◽  
Qualitative Comparative Analysis ◽  
Project Finance ◽  
Civil Infrastructure ◽  
Financial Innovations ◽  
Transportation Projects ◽  
Federal Highway ◽  
Infrastructure Project ◽  
Financing Gap ◽  
Integrated Or

Due to the growing demand for civil infrastructure, financial innovations are required to close the financing gap. However, a lack of theories has inhibited a complete understanding and, thus, creation and diffusion of financial innovation. A lack of theory about financial innovations in infrastructure is mainly due to the absence of a framework to conceptualize these innovations. A typology that enables comparison of financial systems and, hence, provide a framework to conceptualize financial innovations is missing in the existing literature. This paper defines innovation in the context of financing, funding and delivery of infrastructure projects and proposes a new typology for conceptualization of the loci and types of financial innovations in infrastructure. The loci of innovations are in risk mitigation, regulation, cash flow, contract, organizational, and capital sub-systems. Types of innovations are classified as either integrated or modular and either sustaining or disruptive. The typology was tested by mapping seven innovations created by the U. S. Federal Highway Administration and diffused into 232 transportation projects between 1994 and 2002. Qualitative comparative analysis was then used to evaluate the diffusion trends of financial innovations in the case studies and to demonstrate the capability of the proposed typology for facilitating theory building in the area of infrastructure financial innovations.

scholarly journals Perspectives of Infrastructure Project Finance: Intercultural Investment, Connectivity and Trust

2019 ◽  
Vol 23 (1) ◽  
pp. 27-37
Author(s):  
C. H. Luttermann
Keyword(s):  
European Union ◽  
High Speed ◽  
Theory And Practice ◽  
Project Finance ◽  
The European Union ◽  
Transnational Community ◽  
Infrastructure Project ◽  
Peaceful Development ◽  
Private Actors ◽  
Opening Up

Project fnance of infrastructure (e.g. exploitation and transportation of natural resources, high speed railways, internet) forms a basis for the peaceful development and the prosperity of nations as well as the transnational community. What is needed are dependable networks in a world in transition, where digitalisation and new powers demand joint action. Particularly in the Eurasian region, from Lisbon to Vladivostok, felds with future prospects are opening up for Russia, Germany and the European union. We can develop them through investment and cooperation, by building up trust through common rules and sustainable substance. Here, a concept for this is presented for “Intercultural Project Finance”: An order of law and business (order of assets; German: Vermoegensordnung), in which state and private actors build up the necessary trust and are able to co-operate and proft transnationally for the good of the common prosperity of all peoples. A key element of a suitable system for the investment of capital (transnational investor protection law) is a sustainable valuation law; this has to be developed and etablished by legal comparison. In the following, relevant aspects for theory and practice which are basic for the actors of infrastructure project fnance will be shown, as well as the new initiative of the European union regarding “Connectivity”.

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