Annotated Bibliography of Project Finance

1. Ball, J. "Understanding the Mechanism." Euromoney, August 1988, S8S10.

This article describes the concepts underlying and the mechanics of project financing. The concepts and mechanics are discussed from the perspectives of both borrowers and lenders. Project feasibility, as an example, must be evaluated by both borrower and lender. Regardless of what the numbers may promise on an assumption of success, the lender must determine that the underlying assumptions of success are themselves valid. Similarly, borrowers must assure themselves that a proposed project provides a high probability of goal attainment. Only after such initial evaluations are performed and yield the desired results, may considerations of the structure and specifics of a project loan be addressed by either borrower or lender.

2. The Banker. "Buybacks: Payment in Kind." The Banker, 141 (February 1991): 39.

This article describes a specific type of deal structure which is required by some countries for project finance arrangements. The buyback structure described in this article is most often associated with project finance in nonindustrial countries. The particular deal described in this article refers to a project within Iran.

The buyback arrangement is a form of countertrade. Countertrade is a generic term which refers to trade involving an element of reciprocity. Buyback arrangements are most often used in when producing facilities ar

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se clause in the contract between the borrower and the lender, as a means of minimizing lender risk in the event of a default by the Soviet buyer. Prior to the economic reforms introduced by President Gorbachev, an official agency of the Soviet government was a party to all international financial deals. In the past, the Soviets were regarded as among the most secure of sovereign borrowers. As sovereign borrowers, this perception has not, and is not expected to change. The implementation of perestroika, however, has enabled Soviet enterprises to effect their own foreign loans, in which the Bank for Foreign Trade (Vnesh torgbank), the chief Soviet borrowing agency, need not be a party to the transactions. In such instances, western lenders will, for the first time, be exposed to Soviet enterprise risk, as opposed to Soviet sovereign risk. 10. Ferrigno, J. W. "Public and PrivateIt's Mutual." Euromoney, August 1988, S50S51. This article deals with project finance associated with public projects. In some instances, private lenders provide finance to public bodies for such projects. Most often, however, the borrower is a private sector entity, while the loans are extended by both private lenders and government agencies.
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Approximate Word count = 3082
Approximate Pages = 12 (250 words per page)

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