Lease & Project finance

What is a project

It is important to understand what makes something a project and how it differs from day to day
work and how it is supposed to be managed.

A project: It is a temporary endeavour undertaken to create a unique product, service or result.

A project: It is a temporary organisation that is created for the purpose of delivering one or more
business projects according to the agreed business case.

Characteristics of projects

Projects have some or all of the following characteristics:

● They have a definite start and endpoint

● Once the endpoint is reached the project is over

● They are attempting to achieve something new

10 Golden rules of project risk management

 The benefits of risk management in projects are huge.

 Make risk management part of your project
 Identify risks early in your project
 Communicate the risks
 Consider both threats and opportunities
 Clarify ownership issues
 Priorities risks
 Analyze risks
 Plan and implement risks responses
 Register project risks
 Track risks and associated tasks.

Project finance defined

The International Project Finance Association (IPFA) :
“The financing of long-term infrastructure, industrial projects and public services based upon a
non-recourse or limited recourse financial structure where project debt and equity used to finance
the project are paid back from the cash flow generated by the project.”