Risks of project financing |
Project financing is a model of financing the projects based on the analysis of the feasibility of the project itself, since only the projects whose generated money inflow from the project is high enough to allow for the repay of invested funds are considered eligible. Consequently, the contracting followed by the project financing has to meet mutual interests of various parties, and therefore the expected economic return from each participant is in proportion with the risk they bear in the project execution process. Hence a successful project financing analysis is said to be based on the examination of all the risks that the project carries during its life cycle. This paper but points out these risks.
Benković Slađana , Miloš Milosavljević |