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 >