Project financing has different meanings in different domains
In this blog, I would try to throw light on the significance of finance, when it comes to project management. The international project finance association defines the project finance as, “The financing of long-term infrastructure, industrial projects, and public services using a non-resource or restricted resource financials framework, in which project debt and equity are repaid from the project's cash flows.” Project finance really involves obtaining finance for the project from two key players, the first is investors who are looking for equity investments that have large pay outs and they are willing to take on a little bit risk to obtain them and the second group are lenders those who provide funding, but who are willing to take a lower pay out in exchange for lower risk. They are typically quite risk adverse, so there are two different players with different risk tolerance and they looking for different things out of the project finance. Call us for project financing fun...
