The contractual structure of project financings is introduced, along with the main project finance parties: The sponsors, the project company, the lenders, the EPC contractor, the O&M contractor, the feedstock suppliers, the offtakers, and others. The sponsors, the project company, and the EPC contractor are studied in detail: What to look for in these parties? What are their conceptual contractual arrangements?

The detailed review of the key parties to project finance transactions is continued in this chapter, where the O&M contractor, the feedstock suppliers, the offtakers, and other parties are studied in detail.

Risk assessment and mitigation is fundamental to successful project financings. In this module, a structured framework for evaluating and mitigating projects is introduced. Construction, operations and maintenance, environmental and social, market, financing, legal and regulatory, and resource risk are all explained and reviewed.

The project financing plan is introduced. Uses and sources of funds are studied, and the relationship between debt and equity is examined. Key financial ratios for projects are reviewed. A conceptual framework of project financial modelling is presented.