Abstract
Biomass projects can help developing countries to protect their environment as well as to build a modem infrastructure. However, such projects present, in addition to the more typical risks associated with fossil-fuel projects, certain risks relating to the unique technologies and fuels used in such projects. Further, their location in developing countries regularly creates enhanced political and credit risk as well. Biomass power projects, like any other power project, must be financed. To be financeable, a power project should allocate risk in the most efficient way, so as to maximize return on investment. This paper examines the way in which various project documents can be structured to allocate most efficiently the technology and fuel risks unique to biomass projects, as well as the more typical risks, such as construction risk, permitting risk, expropriation risk, currency risk, country risk, sovereign risks, operating risks and credit risk. In addition, this paper summarizes the public financing sources and support that are available to assist in meeting the unique risk profiles of biomass projects. Specifically, it examines some of the principal multilateral and export credit agencies having involvement in this area. Finally, it examines potential strategies available to the developer of a biomass project
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Nordlinger, D E;
[1]
Shaw, F C
[2]
- Skadden, Arps, Slate, Meagher and Flom, London (United Kingdom)
- Skadden, Arps, Slate, Meagher and Flom, Washington, D.C. (United States)
Citation Formats
Nordlinger, D E, and Shaw, F C.
Introduction to biomass energy project financing, funding sources and government strategies.
UNIDO: N. p.,
1995.
Web.
Nordlinger, D E, & Shaw, F C.
Introduction to biomass energy project financing, funding sources and government strategies.
UNIDO.
Nordlinger, D E, and Shaw, F C.
1995.
"Introduction to biomass energy project financing, funding sources and government strategies."
UNIDO.
@misc{etde_340397,
title = {Introduction to biomass energy project financing, funding sources and government strategies}
author = {Nordlinger, D E, and Shaw, F C}
abstractNote = {Biomass projects can help developing countries to protect their environment as well as to build a modem infrastructure. However, such projects present, in addition to the more typical risks associated with fossil-fuel projects, certain risks relating to the unique technologies and fuels used in such projects. Further, their location in developing countries regularly creates enhanced political and credit risk as well. Biomass power projects, like any other power project, must be financed. To be financeable, a power project should allocate risk in the most efficient way, so as to maximize return on investment. This paper examines the way in which various project documents can be structured to allocate most efficiently the technology and fuel risks unique to biomass projects, as well as the more typical risks, such as construction risk, permitting risk, expropriation risk, currency risk, country risk, sovereign risks, operating risks and credit risk. In addition, this paper summarizes the public financing sources and support that are available to assist in meeting the unique risk profiles of biomass projects. Specifically, it examines some of the principal multilateral and export credit agencies having involvement in this area. Finally, it examines potential strategies available to the developer of a biomass project for soliciting the involvement of, and negotiating with, local governments and public financing agencies. (author)}
place = {UNIDO}
year = {1995}
month = {Dec}
}
title = {Introduction to biomass energy project financing, funding sources and government strategies}
author = {Nordlinger, D E, and Shaw, F C}
abstractNote = {Biomass projects can help developing countries to protect their environment as well as to build a modem infrastructure. However, such projects present, in addition to the more typical risks associated with fossil-fuel projects, certain risks relating to the unique technologies and fuels used in such projects. Further, their location in developing countries regularly creates enhanced political and credit risk as well. Biomass power projects, like any other power project, must be financed. To be financeable, a power project should allocate risk in the most efficient way, so as to maximize return on investment. This paper examines the way in which various project documents can be structured to allocate most efficiently the technology and fuel risks unique to biomass projects, as well as the more typical risks, such as construction risk, permitting risk, expropriation risk, currency risk, country risk, sovereign risks, operating risks and credit risk. In addition, this paper summarizes the public financing sources and support that are available to assist in meeting the unique risk profiles of biomass projects. Specifically, it examines some of the principal multilateral and export credit agencies having involvement in this area. Finally, it examines potential strategies available to the developer of a biomass project for soliciting the involvement of, and negotiating with, local governments and public financing agencies. (author)}
place = {UNIDO}
year = {1995}
month = {Dec}
}