Infrastructure financing: guiding Indicators
What does someone need to know before investing in a project. Cost, quality and time are three of the most important factors concerning any undertaking activity. However, the operational stage is very important when investing. Will the project be profitable? Will there be market barriers? How does t...
Saved in:
| Main Authors: | , |
|---|---|
| Other Authors: | |
| Language: | en_US |
| Published: |
2023
|
| Subjects: | |
| Online Access: | http://hdl.handle.net/11610/24783 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1828461825954414592 |
|---|---|
| author | Lymperopoulos, Marinos Λυμπερόπουλος, Μαρίνος |
| author2 | Ρουμπούτσου, Αθηνά |
| author_sort | Lymperopoulos, Marinos |
| collection | DSpace |
| description | What does someone need to know before investing in a project. Cost, quality and time are three of the most important factors concerning any undertaking activity. However, the operational stage is very important when investing. Will the project be profitable? Will there be market barriers? How does the country of project implementation influence the level of success? Could the location, the project is created could improve or doom to failure the investment? The only way to success is to try lay down a project appropriately but what if this leads to a collapse? Gatti’s following words are very appropriate and could not be more accurate than ever in this case.
“A clear barrier to investments in infrastructure is the endemic unavailability of reliable data regarding infrastructure performance. Infrastructure investors are not in the position to assess the different degrees of risk of different phases of the project life and the natural effect is to force them to abandon potentially profitable projects simply because they lack a suitable benchmark panel of data. Furthermore, most of the documentation supporting the projects is subject to nondisclosure agreements.” (Gatti, 2014)
Corporate banks used to hold considerable experience in project finance, through their especially operated departments and their clients’ expertise. However, new regulatory frameworks and the Basel conventions following the 2008/9 global financial crisis (GFC) have limited their contribution. So, although there is a great need for investments in infrastructure, there are also barriers such as (i) the Regulatory framework, (ii) the Basel III convention, (iii) Accounting rules, and most importantly, the lack of historical information about infrastructure performance which would provide investors with outlook assessments.
The regulatory framework is an indissolubly part of every project and is always depended on the project’s country. As a result, it is not easy to determine which are the regulations that form it.
According to the mention on the Basel III in 2011, is the newest edition of the previous conventions which is updated by the global financial crisis (GFC) in 2008. This showed that liquidity is as important for a bank as the credit quality, and so minimum liquidity requirements have been introduced for the banking sector in order to deter mismatched funding (borrowing short and lending long).
The accounting rules that a project has to be based on is also important. At first, the project evaluation is founded on the cash flow analysis, and the results are significant for both sponsors and owners of the project, who would like to be as sure as possible for their potential investment. |
| id | oai:hellanicus.lib.aegean.gr:11610-24783 |
| institution | Hellanicus |
| language | en_US |
| publishDate | 2023 |
| record_format | dspace |
| title | Infrastructure financing: guiding Indicators |
| topic | PPPs Guiding Indicators Project Financing Credit Rating Agencies χρηματοδότηση υποδομών Finance Credit ratings Banks and banking Investments |
| url | http://hdl.handle.net/11610/24783 |
| work_keys_str_mv | AT lymperopoulosmarinos infrastructurefinancingguidingindicators AT lymperopoulosmarinos infrastructurefinancingguidingindicators AT lymperopoulosmarinos chrēmatodotēsēypodomōnkateuthyntērioideiktes AT lymperopoulosmarinos chrēmatodotēsēypodomōnkateuthyntērioideiktes |