Project FinanceProject finance is a non-traditional financing technique that is now used even by many large-scale corporate projects. It is increasingly emerging as the preferred alternative for financing capital assets and other large-scale projects. As a study, project finance includes understanding the rationale for financing a project, how to prepare the financial plan, assess risks, design the financing mix and raise the funds. According to the International Project Finance Association, "project finance" is defined as "the financing of long-term infrastructure, industrial projects and public services, based on non-recourse (project financing guaranteed by some kind of ( collateral, usually tangible assets, etc., is known as non-recourse financing) or a limited recourse financial structure (in which the project debt and equity used to finance the project is repaid from the cash flows cash generated by the project) » Project financing is the financing of a particular project, such as the hospital in our case, which is repaid from the cash flows of that project. It differs from traditional forms of financing because. the financier looks primarily to the project assets and revenues in order to secure and repay the loan Usually, no recourse will be provided by the borrower's non-project assets. In this situation, the credit risk associated with the borrower is not as great as in a regular loan transaction; what is most important is the identification, analysis, allocation and management of each risk associated with the project. Figure 1: Characteristics of project financing Term loan A term loan is a loan with a maturity date but without amortization. The borrower pays interest monthly, quarterly or annually, a...... middle of paper ......credit and bank guarantees come under non-fund financing. They remain dormant on the balance sheet until transactions reach their limit. Letter of Credit – A buyer issues a letter of credit in favor of the seller with its issuing bank. After the seller has shipped his goods, he presents himself with the required documents to the confirming bank, which gives the payment guarantee. The seller can then choose any bank to negotiate his letter of credit. Bank Guarantee – The bank issues a guarantee that in the event of the occurrence or non-occurrence of a specified event, the bank will make good any loss incurred. The guarantee is issued upon receipt of a request from the applicant for an item/transaction in favor of a beneficiary. The issuing bank will pay the guarantee amount to the “beneficiary” of the guarantee upon receipt of the beneficiary’s request...