Project finance of power plant Essay Example | Topics and Well Written Essays - 4250 words

Project finance of power plant - Essay Example Emerging markets have also employed the concept3. For instance, a company may want to undertake some oil exploration and extraction. The process is very expensive. The company may convince several sources to finance its project, with an agreement that upon finding the oil and extracting it, they will have a share of the proceeds. Repayment is therefore based on the success of the project and the future cash flow determines the amounts each source gets4. The principal participants project financing transaction include both national and international banks; national and international sponsors; government banks; capital markets; amongst others. The company seeking financing for the project will usually formulate a proposal that it presents to the various participants. Based on the strength of the project proposal, the company will get the funding subject to repayment terms. The terms are not fixed. They depend on the bargaining power of each of the contracting party5. The risk factor in such an arrangement is evident. The creditors lend the company undertaking the project the money not having a clear picture of whether or not they will get repaid6. They undertake a risk analysis that informs their decision to come aboard. We shall look at project financing, how it works, the risk involved and how lawyers go about addressing the risk issues and cushioning their clients from loss as much as possible. Given the complexity of a project financing transaction, the number of players involved and their nature and the amount of money invested, the risk is very high. There is need to effectively manage the risk to ensure every party is cushioned from possible losses that may arise as a result of an unforeseen circumstance. Heinz-Peter Berg provides a 7 steps risk management procedure.7 Establishing goals and context: In this step, the environment of the project is reviewed to

Strolling along the Narrow Paths into the Deep Forest Essay

Strolling along the Narrow Paths into the Deep Forest - Essay Example A soft waft of air tickles the leaves above creating a flip-flopping light underground – something romantically perfect for couples. Going to the forest is one of the best voyages in life to take. God indeed loves humanity as it manifests through the perfect beauty of the nature surrounding us. I can remember one sunny and blissful morning when I decided to take a trip to an outskirt nearby. Half a kilometer away, I could tell that one blissful reunion would take place later that day. Because I am a forest addict, I had the cheek to go there all by myself. Just like what most forest goers encounter, I had my share of stern tests. Before getting to the heart of the timberland, I knew that I had to go through tough challenges. Nevertheless, these challenges would not tarnish attitude towards this place since the way I feel while am at this place outweighs the few challenges I have to encounter. Therefore, no matter how many challenges I would encounter, it enhances my confidence and attitude towards the place; thus, giving me a good reason why I will always consider it the best place I can be in the world. Finally, I arrived at the doorstep of the jungle, and the first thing I saw was a cohort of vibrant buds bowing their heads down to welcome me, and although quite silly, I felt, as I was treated royally. As I hovered above my head, I could see the wild vines meshing up with each other to form a lovely wild curtain; I could also hear the birds chirping tones in mirth. It gave the impression as if they were chanting out in harmony to serenade me. I stared down and saw my leather booths muddled up with some thick mud clinging around them, but I knew the sludge was not going to stay there for long as the spiky fingers of the rye were ready to wipe them out. When I finally took several steps inward, it seemed as time has traveled so fast that day. In fact, the surroundings turned rather gloomy, although everything  was still in sight. This reminded me that and that I would finally leave and get back to the normal life.