For those clients who are not self-financing their forays, it is even more critical that projects involving project finance abroad accurately evaluate economic and political risk as the views of third parties are likely to differ from that of the person undertaking the investment. A higher level of risks may increase the cost of capita to the point that is not possible to pursue as investment opportunity. Fortunately, however, alternatives for enterprises seeking international investment exist for financing projects.
International agencies can provide enterprises with the assistance necessary for investment, and minimize investment-associated risks. The Central Asian states are increasingly gaining access to sources of capital. The nature of many of the opportunities available in the region lends themselves to project finance.
The nature of project finance often requires assurances to lenders that must be bound officially. Often, host official bodies will ensure the continuity of the project by issuing financing in the event of a default, by mediating with national labor unions, or by providing oversight among other sort of guarantees. Eurasia Consulting’s consultants have dealt over the years with various lending and investment guarantee mechanisms, in particularly those designed by the World Bank and MIGA for various projects in the economies in transition in Europe. For many years, our consultants have been advising foreign investors on projects involving international investment institutions.
In the past, our consultants have been responsible for the preparation and negotiations of multiple loan agreements for projects in the infrastructure, energy, urban development, corporate financing and other sectors. As part of technical assistance projects sponsored by international financial institutions and development agencies, one of our consultants served as a consultant to various government agencies in Bosnia and Herzegovina, Bulgaria, Croatia, Kazakhstan, Latvia and Yugoslavia (both in Serbia and in Montenegro). His role in advising investors in privatizations in Central and Eastern Europe, and familiarity with investment banking practices in developed market economies have equipped him fully to advise governments on strategic investors’ expectations. Our consultants have over 12 years of experience in financing, restructuring and privatization in the financial, manufacturing, water, energy, transportation and mining sectors of transitional economies.