Project Finance and Excel - Build Financial Models from Scratch - Transactions Eligible for Project Finance

The video tutorial explains project finance, focusing on its role in funding capital-intensive projects needed by public entities. It highlights the importance of private capital in addressing financial resource gaps. The tutorial explores various sectors where project finance is applied, such as transportation, energy, environment, telecommunications, and social infrastructure. It emphasizes the cash flow-based model of repayment and the private sector's role in managing public utilities and services.

What is the primary reason public entities seek project finance?

• To increase public sector employment

• To fulfill capital-intensive needs without sufficient financial resources

• To reduce taxes

• To avoid government regulations

Which of the following is a general category of transactions eligible for project finance?

• Stock market investments

• Projects needed by public entities

• Luxury housing projects

• Private sector mergers

Which sector is NOT typically associated with project finance?

• Transportation

• Energy

• Retail

• Telecommunications

How are new roads often financed according to the video?

• By increasing toll taxes

• Using a cash flow-based model of repayment

• Via public donations

• Through government bonds

What role does the private sector play in social infrastructure projects?

• They manage public relations

• They provide design services only

• They take over public utilities and services

• They set government policies