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Project Finance For Infastructure Projects > 8. Project Finace Stakeholders > Flashcards

8. Project Finace Stakeholders Flashcards

1
Q

Front

A

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2
Q

Who are the key stakeholders in project finance?

A
  1. Project Sponsors, 2. Lenders, 3. Off-takers, 4. Governments and Regulators, 5. EPC Contractors, 6. O&M Contractors, 7. Suppliers, 8. Insurance Providers, 9. Advisors/Consultants, 10. Local Communities/NGOs. (Lesson 8, p.1)
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3
Q

What role do project sponsors play in project finance?

A

Project sponsors initiate, develop, and fund the project, contributing equity and taking on development risks. (Lesson 8, p.1)

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4
Q

What are the key responsibilities of project sponsors?

A
  1. Project Development, 2. Equity Contribution, 3. Risk Sharing, 4. Governance and Decision-Making, 5. Exit Strategy. (Lesson 8, p.1)
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5
Q

What are the types of equity investors in project finance?

A
  1. Strategic Investors, 2. Private Equity Firms, 3. Development Finance Institutions (DFIs), 4. Government Agencies. (Lesson 8, p.1)
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6
Q

What risks do equity investors face?

A
  1. Development Risk, 2. Construction Risk, 3. Operational Risk, 4. Market Risk. (Lesson 8, p.1)
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7
Q

Who are the lenders in project finance?

A
  1. Commercial Banks, 2. Development Finance Institutions (DFIs), 3. Export Credit Agencies (ECAs), 4. Multilateral Institutions, 5. Institutional Investors. (Lesson 8, p.2)
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8
Q

What are the main debt instruments in project finance?

A
  1. Senior Debt, 2. Mezzanine Debt, 3. Project Bonds, 4. Convertible Debt. (Lesson 8, p.2)
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9
Q

What are the key responsibilities of lenders?

A
  1. Provide capital, 2. Conduct due diligence, 3. Structure loan agreements, 4. Monitor project performance, 5. Mitigate risks. (Lesson 8, p.2)
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10
Q

What risks do lenders face in project finance?

A
  1. Construction Risk, 2. Operational Risk, 3. Market Risk, 4. Political Risk, 5. Foreign Exchange Risk. (Lesson 8, p.2)
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11
Q

What role do off-takers play in project finance?

A

Off-takers purchase the project’s output, ensuring stable revenue streams and reducing market risk. (Lesson 8, p.3)

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12
Q

What are the types of off-take agreements?

A
  1. Power Purchase Agreements (PPAs), 2. Tolling Agreements, 3. Supply Agreements, 4. Capacity Agreements. (Lesson 8, p.3)
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13
Q

What are the key risks faced by off-takers?

A
  1. Counterparty Risk, 2. Market Risk, 3. Regulatory Risk. (Lesson 8, p.3)
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14
Q

What role do governments and regulators play in project finance?

A

They establish policies, issue permits, provide financial support, and ensure regulatory compliance. (Lesson 8, p.4)

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15
Q

How do governments support project finance?

A
  1. Policy Frameworks, 2. Licensing and Permits, 3. Subsidies and Guarantees, 4. Public-Private Partnerships (PPPs). (Lesson 8, p.4)
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16
Q

What risks do governments and regulators face in project finance?

A
  1. Political Risk, 2. Regulatory Risk, 3. Public Opposition, 4. Fiscal Risk. (Lesson 8, p.4)
17
Q

What role do EPC contractors play in project finance?

A

EPC contractors handle engineering, procurement, and construction, ensuring project completion. (Lesson 8, p.5)

18
Q

What are the key elements of an EPC contract?

A
  1. Fixed-Price Contract, 2. Time-Specific Completion, 3. Performance Guarantees, 4. Warranties and Maintenance. (Lesson 8, p.5)
19
Q

What risks do EPC contractors face?

A
  1. Construction Delays, 2. Cost Overruns, 3. Supply Chain Disruptions, 4. Force Majeure Events. (Lesson 8, p.5)
20
Q

What role do O&M contractors play in project finance?

A

They manage operations and maintenance, ensuring efficiency, reliability, and compliance. (Lesson 8, p.6)

21
Q

What are the different types of O&M contracts?

A
  1. Fixed-Price O&M Contracts, 2. Performance-Based O&M Contracts, 3. Long-Term Service Agreements (LTSAs). (Lesson 8, p.6)
22
Q

How do O&M contractors impact project finance?

A
  1. Ensure stable cash flows, 2. Minimize operational risks, 3. Improve bankability, 4. Optimize asset performance. (Lesson 8, p.6)
23
Q

What role do suppliers play in project finance?

A

They provide materials, equipment, and services essential for project construction and operation. (Lesson 8, p.7)

24
Q

What risks do suppliers face in project finance?

A
  1. Supply Chain Disruptions, 2. Supplier Default, 3. Quality Risks, 4. Currency and Inflation Risks. (Lesson 8, p.7)
25
Q

How do insurance providers support project finance?

A

They mitigate risks through various policies such as construction, liability, political risk, and force majeure insurance. (Lesson 8, p.8)

26
Q

What role do advisors and consultants play in project finance?

A

They provide financial, legal, and technical expertise, assisting with project structuring and risk management. (Lesson 8, p.8)

27
Q

What role do local communities and NGOs play in project finance?

A

They ensure sustainable development, provide feedback, and advocate for community interests. (Lesson 8, p.8)

Project Finance For Infastructure Projects (11 decks)

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