Project Finance in
A Structured Guide to Assessment
Oriel Group Practice
Postdoctoral Research Associate
Manchester Business School
The University of Manchester
Faisal Fahad Al-Thani
Senior Director and Head of Business Development
A John Wiley & Sons, Ltd.,Publication
This edition ﬁrst published 2010
C Anthony Merna
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Library of Congress Cataloging-in-Publication Data
Project ﬁnance in construction : a structured guide to assessment/Anthony Merna,
Yang Chu, Faisal Al-Thani. – 1st ed.
Includes bibliographical references and index.
ISBN 978-1-4443-3477-7 (pbk. : alk. paper) 1. Infrastructure (Economics)–Finance.
2. Industrial developmentprojects. 3. Risk management. 4. Public-private sector
cooperation. I. Zhu, Yang. II. Al-Thani, Faisal F. III. Title.
A catalogue record for this book is available from the British Library.
Set in 10/13pt Palatino by Aptara R Inc., New Delhi, India
Printed in Malaysia
List of illustrations
List of tables
The development of project ﬁnance
What is ﬁnancial assessment?
Why perform a ﬁnancial assessment?
Who is involved in the risk assessment process?
Where should a ﬁnancial assessment be performed?
When should a ﬁnancial assessment be performed?
What data are to be used?
How shouldassessment outputs be presented?
Purpose of this guide
Scope of the guide
2 Project ﬁnance
Deﬁnition of project ﬁnance
The key characteristics of project ﬁnance
Special project/purpose vehicle
Off-balance sheet transaction
Robust income stream of the project as the basis
Legal and ﬁnancial...