Importance of project financing for economic development

Abstract

This paper presents a theoretic approach towards a comprehensive understanding of influence of project finance on economic growth and development. The prime hypothesis is that the contractual structure of project finance has potential to create numerous benefits for host governments, but inherency of this relation does not necessarily imply the automatism. The study covers various, but convergent factors, such as project finance pre-arrangement, constructing financing, capital structure optimizations, long-term financing, and others, which are important in making decision on implementation of project finance as a method. .