Financing And Investing In Infrastructure Coursera Quiz Answers [better]

D) Political risk

Expropriation, currency inconvertibility, and political violence Rationale: Crucial for investing in emerging markets (e.g., MIGA - World Bank). In infrastructure (Project Finance)

PPP models (BOT, BOO, DBFO), SPV (Special Purpose Vehicle) structure, project life cycle, and stakeholders. and telecom towers. However

The project's cash flows and assets only Rationale: "Non-recourse" means the bank cannot go after the shareholders' other assets if the project fails. if a company defaults

Infrastructure is the backbone of modern society—roads, bridges, energy grids, and telecom towers. However, financing these multi-billion dollar assets is radically different from standard corporate finance. In corporate finance, if a company defaults, you seize the company's assets. In infrastructure (Project Finance), the SPV (Special Purpose Vehicle) has no other assets except the bridge itself.

: In project finance, lenders rely primarily on the project's cash flow for repayment, rather than the general assets of the sponsors.