Project financing advisory

Project Financing is a process of financing a business project initiated by a private party on a specific asset owned by a Public Entity (parking lots, sports facilities, cemeteries, kindergartens, hospitals, etc.). The motivation behind this type of financing is to have the public work built first and then managed by the private party, who will recover the cost and then hand it back to the public agency at the end of the management period.

According to the provisions of the art. 37 – bis of Law no. 109/1994, of the Unified Procurement Code: “project promoters may submit proposals to the contracting authorities regarding the execution of public works or works of public utility. Proposals must contain a spatial and environmental framework study, a feasibility study, a preliminary design, a draft agreement, and a business plan affidavit issued by a financial institution.”

Project Financing therefore requires the inclusion of a crucial ‘clause’: the submission by the promoter, along with the project, of a project financing affidavit issued by a Financial Institution, attesting to the reliability and seriousness of the initiative, especially from the point of view of management capacity.

Such asseveration is essential because if the proposed project proves to be unsuccessful, the owner administration risks losing both the asset and the management service, which it could have offered. With the changes made by the article 4(2)(q) of Decree Law May 13, 2011, no. 70, in paragraph 9 of Art. 153 of Leg. 163/2006 (Contracts Code), project financing asseveration can also be issued by companies registered in the general list of financial intermediaries, pursuant to dn Article 106 of Legislative Decree Sept. 1, 1993, no. 385.

ASACERT, as an independent Inspection Body, ensures the performance of activities while respecting the requirements of integrity, independence, impartiality and confidentiality.

THE BENEFITS.

The asseveration certifies, in the context of project financing operations, the economic-financial consistency of an investment project, the conditions for economic equilibrium, the ability of the project to generate adequate flows, and the possibility of carrying out the work with private capital.