PARTICIPANTS IN PROJECT FINANCING

Project finance is a non-recourse method of infrastructure finance that count on the future cash flow of the project to settle the project funds. Its application is world wide and its popularity is seen in government concession projects. The initiator of the project is called the project sponsor, the project is executed with a newly established company solely for the project called the project company. Contractors, suppliers and technical advisers are responsible for the project execution, all these factors form the internal participants in project financing. External participants are bodies or authorities that provides various support for successful execution of the project and they include: The government, financial institutions, insurance companies, and customers who are responsible to make the project sustainable.