Pooling Water Projects to Move Beyond Project Finance
To date most private sector water projects have been financed on a limited recourse basis, that is, with project cash flows and assets as the main security for lenders. The move from project to corporate (balance sheet) financing is occurring in st...
| Main Authors: | , |
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| Format: | Viewpoint |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/1998/09/441598/pooling-water-projects-move-beyond-project-finance http://hdl.handle.net/10986/11534 |
| Summary: | To date most private sector water
projects have been financed on a limited recourse basis,
that is, with project cash flows and assets as the main
security for lenders. The move from project to corporate
(balance sheet) financing is occurring in stages. Financing
project debt from the sponsor company's balance sheet
exposes that company to significant risk and thus requires a
strong and large balance sheet. Designed in part to shield a
company's balance sheet, innovative financing
structures and instruments are emerging. Ultimately, the
goal is for water utilities to raise debt and equity from
capital markets on the basis of their own balance sheets,
strengthened by a diversified and stable rate-paying
customer base. The authors review the new trends. |
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