Do lenders and banks recognize Project Finance as a viable finance structure?
Project Finance is a discipline where banks, who have divisions in this finance niche, do indeed recognize revenue streams (i.e. solid revenue contracts) as a primary source of collateral. “Project Finance was perfected in the 1970s for major private-sector projects, mainly in the area of oil and gas exploration and extraction, but has been extended widely since then. Project finance techniques are now applied across the world to numerous privately promoted infrastructure projects including power stations, gas pipelines, waste-disposal plants, waste-to-energy plants, telecommunication facilities, bridges, tunnels, toll roads, railway networks, city-centre tram links and now the building of hospitals, education facilities, government accommodation and tourist facilities” (Source: IPFA).
