PROJECT FINANCING

Project Financing is a long-term financing operation of a project in which the repayment of the financing is guaranteed by the expected cash flow of management activities or operations of the project itself.
Typically each Project is characterized in two phases:

• • Planning of the project and testing

  • Operational phase

Only “timely” execution guarantees the production of the cash flow necessary to satisfy the debt to the Lender and to guarantee the margins for the Sponsors.
The Risk of any delay in start up is certainly strategic, together with all operational, technological and environmental risks.

Through the creation of a project company, you achieve the separation of the legal and financial responsibility of the project from those of the partners. The participation of more parties allows an allocation of risks to the partners. This optimally balances the risks transferred to the private operator and the cost of the transfer charged to the public administration. The “project company” or “concessionaire”, is the legal entity established for the purpose of allowing the capital allocated for the project to be kept separate from that of those proposing the investment initiative (the so-called “promoters”).

RISK & INSURANCE ADVISORY

Our task is to determine the Risk Profile of the project and to prepare a document (Insurance requirements) where we outline the characteristics of the insurance program for the transfer of risks to the specialized insurance market. Our activity is at the service of the interests of all the Stakeholders: Sponsors, Shareholders, Lenders, Contractors, sub-contractors, etc.

SECTORS & TYPE OF PROJECT FINANCING

In Italy and abroad the public systems (sovereign funds, governments, public administrations, public companies, etc.) can use Project Financing for the realization of projects and infrastructure for the use of the community in various sectors:
Hospitals, Energy, Infrastructure, etc.
in particular, it is an instrument used to implement individual projects with high complexity and high capital requirements.

Project financing, combining public and private interests, is aimed at establishing a partnership between the public and private parties involved in the project. Through the partnership, on the one hand, the financing of a public work or public utility is guaranteed, on the other hand, its realization and economic exploitation are made possible.
We distinguish two main types of project financing: