Feasibility Study
Assess viability & returns
Finance
Innovative Financing Strategies
Project Financing: Core Principles & Steps
Project financing is a specialized method used for large-scale, long-term projects such as energy, water treatment, and infrastructure. It relies on future cash flows generated by the project itself, typically through a Special Purpose Vehicle (SPV).
How a Mobile Water Treatment Plant Works
Feasibility Studies
Assess technical, financial, market, and environmental viability.
SPV Formation
Establish a separate legal entity to own and operate the project.
Contractual Framework
Secure construction, operation, supply, offtake, insurance, and risk allocation agreements.
Risk Mitigation
Allocate risks to parties best equipped to manage them, including construction, market, and regulatory risks.
Financial Close
Secure funding after meeting regulatory approvals, permits, land rights, and lender conditions.
JBM Consul’s Approach to Project Financing
From your internal documentation, JBM Consul finances projects by:
Blended Financing Models
Combining funding from export credit agencies, private investors, and development banks to build strong capital structures.
Stable PPAs
Long-term power purchase agreements provide predictable revenue streams and attractive investor returns.
Risk Mitigation
Government-backed guarantees and insurance mechanisms reduce political and regulatory risks.
Flexible Investment Structures
Tailored equity and debt participation opportunities designed to meet institutional and private investor needs.
Innovative Partnerships
Strategic collaboration with local and international financial partners to unlock new markets.
Industry Best Practices & Innovative Financing Strategies
Bank Loans
Traditional debt financing, often secured by project assets.
Government Grants & Subsidies
Especially for public infrastructure or strategic sectors.
Private Investments
Equity from sponsors, venture capital, or institutional investors.
Crowdfunding
For smaller or community-based projects.
Municipal Bonds
Used for public infrastructure, repaid via tax revenues.
Public-Private Partnerships
Risk and resource sharing between public and private entities.
Innovative Financing Models
Non-Recourse / Limited-Recourse Loans
Lenders’ claims are limited to project assets and cash flows.
Tax-Increment Financing
Leveraging future project revenues or asset value increases.
Green Bonds & Impact Investing
Supporting sustainability, ESG, and climate-focused initiatives.
Best Practices For Success
Comprehensive Planning
Define goals, timelines, and resource needs.
Robust Financial Modeling
Forecast cash flows, costs, and returns.
Risk Management
Use contracts, insurance, and hedging to mitigate risks.
Stakeholder Engagement
Collaborate with governments, communities, and investors.
Continuous Improvement
Regularly assess and refine practices to ensure sustainability and compliance.
Project Development Cycle
1
2
SPV Formation
Legal entity creation
3
Contractual Framework
Secure construction & supply
6
Execution
Construction & Operation
5
Financial Close
Secure project funding
4
Risk Mitigation
Allocate project risks