Role of Project Finance in Emerging Economies

Abstract

The steady growth of funding projects with project finance to develop and provide infrastructural facilities in developed and emerging economies cannot be overemphasized. This study analysis and reviewed the immense contribution of project finance schemes in constructing numerous public projects. Central to the success of this scheme is the non-recourse financing of projects, allocation and shifting of project risk between the parties of the scheme. The study further found that in spite of the complexity associated with project finance is emerging economies, it is prudent to formulate a very solid and suitable legal framework, provide enabling environment for investors to reap their investments and a stable political atmosphere considering the number of years required to recoup the initial cost of investment.

Keywords: Project finance, emerging economies, legal framework, investors, infrastructure