Financing Of Large Infrastructure Projects And Foreign Debt Risk Management Study

The project financing is the financing of a particular economic project in which a lender is satisfied with the cash flow and earning of that economic project as the primary source of funds from which a loan will be repaid and the assets of the project as collateral for the loan. The lenders can only recourse the cash flow, the assets value of the project and particular contract obligations of the shareholder, but not all the assets of stockholder. Therefore, project finance is often referred as'non-recourse'or'limited-recourse'financing. In practice, the unclear power projects financing has the characteristic of complicated technology and huge amount of investment and is usually large scale and long term with many project participants and various risks which requires a strict contract structure to realize a complete project structure from the feasibility study to the negotiate, engineering, construction and operation of the project. to supervise the risk management of project. The risk management of project is the key to a successful project financing and the major concern is the share of project risk. Firstly, the paper states the produce, actuality and developmental trend of the project financing. Then, the basic pattern, the project financing document system and the major content of the loan agreement are also studied. Finally, the paper discusses the foreign loans management empirical study of nuclear power projects.The dissertation is consisted of four chapters:In Chapter 1,the emergence and development of project financing and the present status and trend in the research of project financing both domestic and overseas abroad are summarized. The current domestic and international statuses of project financing are also investigated.In Chapter 2,the definition of project financing are given. Comparative studies of project financing with corporative financing was made. The traditional financing takes the credit as the criterion to provide a loan. But in the project financing, the economic intensity is the criterion, namely, the cash flow which the project brings after the project completed is the source to repay the load. For the lender, a successful project has the decisive meaning to get their loan back.Chapter 3 discussed the some operational aspects of project financing,including the project preparation,the procedures of project financing,the composing of financing document system,major clauses of loan agreement and the project guarantee system.Finally,the management of foreign debt risk, especially the exchange rate and interest risk are investigated. Empirical study is made on the foreign debt risk management of some real nuclear power project.