"Project Finance" and economic development. A case study

This work shows how is possible to finance and to organize development projects in heavily depressed areas using a “project finance” method. Project finance is the financing of a project based upon a non-recourse financial structure, in which project financial resources are paid back from the cash...

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Autores principales:	María Luisa Garayalde, Sara González, Juan Mascareñas
Formato:	article
Lenguaje:	EN ES
Publicado:	AECOOP Escuela de Estudios Cooperativos 2019
Materias:	Project finance Development Risk mitigation Depressed areas Economics as a science HB71-74
Acceso en línea:	https://doaj.org/article/274018107ff948fabb1c5547b1172a2a
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id	oai:doaj.org-article:274018107ff948fabb1c5547b1172a2a
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spelling	oai:doaj.org-article:274018107ff948fabb1c5547b1172a2a2021-11-12T13:14:39Z"Project Finance" and economic development. A case study10.5209/reve.643021135-66181885-8031https://doaj.org/article/274018107ff948fabb1c5547b1172a2a2019-07-01T00:00:00Zhttps://revistas.ucm.es/index.php/REVE/article/view/64302https://doaj.org/toc/1135-6618https://doaj.org/toc/1885-8031 This work shows how is possible to finance and to organize development projects in heavily depressed areas using a “project finance” method. Project finance is the financing of a project based upon a non-recourse financial structure, in which project financial resources are paid back from the cash flow generated by the project. The paper shows a real case of application of this innovative management technique in a small Ethiopian agricultural village. It can be seen that the process goes far beyond simple financial calculation to fully enter into the management of all risks involved in the development project: underlying assets, participants, natural conditions, economic factors, regulatory changes, political interference, etcetera. The technique allows the self-financing of the development project because it is the asset itself that generates such financing and this allows to promote the creation of other similar assets that will improve the quality of life of the population In the case analyzed, the construction of a well can lead to the cultivation of four orchards that will not only improve the food quality of the population but will also allow the financing of the construction of new wells with their annexes orchards. This cycle ends once all the families of the village have their own orchards. María Luisa GarayaldeSara GonzálezJuan MascareñasAECOOP Escuela de Estudios CooperativosarticleProject financeDevelopmentRisk mitigationDepressed areasEconomics as a scienceHB71-74ENESRevista de Estudios Cooperativos, Vol 131 (2019)
institution	DOAJ
collection	DOAJ
language	EN ES
topic	Project finance Development Risk mitigation Depressed areas Economics as a science HB71-74
spellingShingle	Project finance Development Risk mitigation Depressed areas Economics as a science HB71-74 María Luisa Garayalde Sara González Juan Mascareñas "Project Finance" and economic development. A case study
description	This work shows how is possible to finance and to organize development projects in heavily depressed areas using a “project finance” method. Project finance is the financing of a project based upon a non-recourse financial structure, in which project financial resources are paid back from the cash flow generated by the project. The paper shows a real case of application of this innovative management technique in a small Ethiopian agricultural village. It can be seen that the process goes far beyond simple financial calculation to fully enter into the management of all risks involved in the development project: underlying assets, participants, natural conditions, economic factors, regulatory changes, political interference, etcetera. The technique allows the self-financing of the development project because it is the asset itself that generates such financing and this allows to promote the creation of other similar assets that will improve the quality of life of the population In the case analyzed, the construction of a well can lead to the cultivation of four orchards that will not only improve the food quality of the population but will also allow the financing of the construction of new wells with their annexes orchards. This cycle ends once all the families of the village have their own orchards.
format	article
author	María Luisa Garayalde Sara González Juan Mascareñas
author_facet	María Luisa Garayalde Sara González Juan Mascareñas
author_sort	María Luisa Garayalde
title	"Project Finance" and economic development. A case study
title_short	"Project Finance" and economic development. A case study
title_full	"Project Finance" and economic development. A case study
title_fullStr	"Project Finance" and economic development. A case study
title_full_unstemmed	"Project Finance" and economic development. A case study
title_sort	"project finance" and economic development. a case study
publisher	AECOOP Escuela de Estudios Cooperativos
publishDate	2019
url	https://doaj.org/article/274018107ff948fabb1c5547b1172a2a
work_keys_str_mv	AT marialuisagarayalde projectfinanceandeconomicdevelopmentacasestudy AT saragonzalez projectfinanceandeconomicdevelopmentacasestudy AT juanmascarenas projectfinanceandeconomicdevelopmentacasestudy
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"Project Finance" and economic development. A case study

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