PPI program measures the average change over time in the selling prices received by domestic producers for their output. Sellers view PPI based escalation favorably because it is a useful hedge against collapsing oil prices and thus many oil and gas sales contracts are linked to the PPI
Project financing is an innovative financing technique used to fund many large-scale natural resource projects, from pipelines and refineries to electric-generating facilities and hydro-electric projects. Increasingly, project financing is emerging as the preferred alternative to conventional methods of financing infrastructure and other large-scale projects worldwide. Project finance is finance for a particular project which is repaid from the cash-flow of that project. in a project financing the financier usually has little or no recourse to the non-project assets of the sponsors of the project. The most important aspects are therefore the identification, analysis, allocation and management of every risk associated with the project. In a no recourse or limited recourse project financing, the risks for a financier are great. Since the loan can only be repaid when the project is operational, if a major part of the project fails, the financiers are likely to lose a substantial amount of money >
