The following extract is from Practical Introduction to Project Finance by C.R.Tinsley published by Euromoney/DCGardner Self-Study Solutions.  You can order it from IAF directly   or from Euromoney Self-Study Solutions, Nestor House, London EC4V 5EX, England.   Fax:+44-20-7779-8541 

OBJECTIVES OF PARTICIPANTS

At all times, it is wise to establish the objectives and criteria propelling each Participant in a Project Financing. From the previous list of Participants, these can be summarised as follows (not necessarily all criteria may apply):

1. Sponsors

1. Shed risk to lenders eg political risk
2. Project too large
3. Generate acquisition funds from existing projects
4. Isolate a project; non-recourse; new sector
5. Greater debt:equity - higher leverage
6. Draw in other venturers, funding sources
7. Off-balance-sheet

2. Borrower

1. Keep management control
2. Co-ordinate project development/operation
3. Limit recourse to Sponsors
4. Efficient tax allocation

3. Financial Advisers

1. Fees for Services
2. Second fee from funding/other services/sale
3. Equity on Success
4. Establish relationship for succeeding role

4. Arrangers/Lead Underwriters

1. Fees
2. Fees from underwriting
3. Fees, income from loan participation
4. Fee for continuing role eg agent
5. Sometimes equity return if investor
6. Relationship for succeeding mandates
7. Prestige/league table rank
8. Extension of other Sponsor relationship
9. Closely define risk allocation
10. Control if project in trouble, defaults

5. ECAs/MLAs

1. Finance national entities overseas (ECAs)
2. Development Lending (MLAs)
3. PRI
4. Multiplier effect from presence

6. Agent/Trustee

1. Fee income
2. Establish relationship with Borrower/Sponsors
3. Control position in negotiation of project documentation
4. "Control" position in workout

7. Lessors

1. Earnings from tax structuring
2. High equity return in leveraged lease
3. Residual value
4. Services income if operating lease
5. Ease of foreclosure, sale

8. Independent Experts

1. Fee income
2. Prestige
3. Limit liability

9. Lawyers

1. Fee income
2. Relationship service
3. Train staff

10. Government

1. National development
2. Shed risk to private sector
3. Local development/votes
4. Reliable infrastructure provision
5. Limit national indebtedness
6. Step-in rights if Sponsors not performing
7. Privatisation
8. Speedier Completion by private sector
9. Value from higher efficiency in private sector
10. Retransfer project to public sector (BOT)
11. Pass tax advantages to private sector
12. Landmark deal to attract further foreign investment
13. Create opportunities for nationals/politicians to extract facilitation "commissions"

11. Construction Company

1. Profit from construction contract/change orders
2. Control LDs
3. Mobilise staff/hours billable
4. Capitalise on captive construction techniques/technology
5. Investment return, if equity
6. Bonus from early completion

12. O & M Company

1. Service Income
2. Bonuses
3. Productivity Gain
4. Spare parts profit

13. Insurers

1. Premium income
2. Portfolio risk - diversity
3. Limit claims, maximise deductibles
4. Stall settlements

14. Swap Counterparty/Intermediary

1. Lower cost
2. Intermediary fee
3. Share risk
4. Limit counterparty risk

15. Suppliers

1. Long-term contract
2. Profit
3. Basis for own Project Financing

16. Equipment Vendor

1. Profit from sale
2. Prestige
3. Increased price from LD requirement

17. Offtaker

1. Reliability of supply
2. Long-term savings
3. Physical underpinning of trading positions
4. Strategic linkage

18. Transportation Company

1. Service income
2. Wider amortisation of assets
3. Basis for own Project Financing

19. Rating Agency

1. Fee income upfront
2. Prestige - new business
3. Continuing rating income

If you have identified other objectives of the  19 Project Finance Participants, please email those (with the Participant number/heading) to iaf@compuserve.com   Full attribution will be made if selected for addition to the table above.

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