The project financing is differentiated from traditional lending business because of the separation of the object of funding the activity conducted by credit applicants. This separation is realized in the ex novo creation of a legal and separate economic units, which is a new venture that so identifies with the funded project, and gives rise to a number of risks of a different nature than those that arise in a classic lending relationship; this involves careful analysis and bargaining about the division of them between the different parties to the transaction. Typically a project involves the following categories of workers: promoters (sponsors), which develops the idea of â€‹â€‹investment in its technological elements, commercial, financial, fiscal, currency, legal etc. (Sometimes using external consultants), will analyze and verify the socio-political feasibility with the relevant bodies of the country that will host the investment, make up the company in which the investment itself will occur for accounting and give a part of capital title of shareholders, shall contact the banks and financial institutions that will take care of collecting the funds necessary er the investment implementation; the authorities of the country in which the investment will be deployed, which, in certain circumstances, because of the particular nature of the investment projects (nuclear power plants, pipelines, major communication arteries, major industrial facilities etc.), shall be held the actual sponsors of the project.
It is also meaning is a financing of a particular economic entity, in which the lender relies, at an early stage, on cash flow and earnings economic unit in question as the source of funds that will allow the loan repayment and economic activities of the unit as collateral of the loan guarantee.
The project financing is therefore a very complex process based on a detailed analysis of the investment future-oriented financial structure determines a model in which it is used to its maximum capacity of indebtedness inherent in the project and defines a complex web of rights and obligations between the different actors involved with the subsequent signing of several contracts for its implementation such as loan agreements, guarantee, procurement, supply, franchise, service.