Large construction projects have equally large overheads. When it comes to financing these projects, there can be several parties involved in accumulating the required funding. This post looks at some of the main parties needed to finance a project of this scale.
Private sector partner
A private sector partner is often a corporation or a limited partnership created for the sole purpose of the particular project. This party is at the centre of all contracts, borrowings and the construction and operation of the project.
A project sponsor is someone who takes on the role of managing the project. The project sponsor owns the project and will receive profit, either as a result of the ownership or via management contracts, if the project succeeds. The project sponsor often has to cover certain liabilities or risks of the project by providing guarantees or by entering into management or service agreements.