文档介绍：THE ROLE OF PROJECT FINANCE IN THE DEVELOPMENT OF CAPITAL PROJECTS IN A DEPRESSED ECONOMY
by
Nwachukwu C . C
Advan Ikoku College of Education, Owerri, Imo State.
ABSTRACT
One of the most significant features of under developed economy is the absence of well-structured capital projects. Due to the amount normally required for such high magnitude investment and coupled with the risk factor and political instability associated with it, developed economists and multinational banks, co-operate bodies feel insecure investing in such capital projects in a depressed economy. Hence capital projects require high financial expenditure as a hallmark investment. Therefore there is a pressing need to investigate the role of project finance in the development capital projects in our depressed economy.
The source of project finance depends on the type of project, the viability of the project, the availability of funds, which is a function of time, interest rate and risk factors among others.
This study will examine the type of project finance and those capable of financing capital projects, the viability of a project and the tools in assessing the viability of a project which will help us to have an empirical assessment on the role of project finance in the development of capital projects in Owerri the capital of Imo State of Nigeria as an example of a depressed economy.
INTRODUCTION
There is no doubt that project finance plays an undisputable and unavoidable role in the development of capital projects in Nigeria – a major example of a depressed economy – more so as one considers the quantum of capital required for the execution of such projects. One may like to have a first class understanding of what project finance is all about the meaning of capital projects and a picturesque of a depressed economy.
According to ANULOLAM, (2000) project finance deals with the efficient and effective use of and sourcing of capital to finance a project in order to maximize the clie