Project Finance Supply Chain for Large-Scale Infrastructure Projects

Authors

1 Associate Prof., Department of Industrial Management, Faculty of Management and Accounting, Allameh Tabatabaei University, Tehran, Iran.

2 PhD Student, Department of Industrial Management, Faculty of Management and Accounting, Allameh Tabatabaei University, Tehran, Iran

3 Professor, Department of Industrial Management, Faculty of Management and Accounting, Allameh Tabatabaei University, Tehran, Iran.

Abstract

Background & Purpose: The country's economic development requires providing sufficient financial resources for the design, construction, purchase, and implementation of infrastructure projects, including hydroelectric projects. The lack of these resources can slow down the development process and cause the country to lag behind the global technology level and reduce the welfare of the society. The present study has examined the project financing chain. In this framework, the main actors of the chain, their roles and activities, the project implementation phases, the different stages of the financing process, the existing problems and obstacles, as well as the facilitating and driving factors in the project financing process have been given special attention.
Methodology: The present research method is designed based on an exploratory and interpretive approach and has been carried out by combining structured interviews with experts and multiple case studies.
Findings: In addition to revealing the obstacles and problems as well as the driving and facilitating factors in the project financing process, the research findings indicate an important fact: various actors in the project financing chain—including lenders, investors, equipment suppliers, contractors, operators, etc.—play effective communication and political roles that advance hydropower projects in the "macro" dimension. By making "meta-decisions," these actors pave the way for micro-decisions that minimize project risks and remove obstacles and problems from its implementation path, thus facilitating the project implementation process. Coordination in the "macro" dimension, both with other actors and with meta-project actors, ensures the smooth flow of physical, informational, and financial flows along the chain and the successful implementation of projects.
Conclusion: The results of the study show that the success of financing hydropower projects depends not only on the management of financial and technical resources, but also on the key role of actors in the financial supply chain and their political and communication interactions in the macro dimension. The adoption of macro-decisions by these actors provides the basis for making micro-decisions that reduce risks and remove implementation barriers. Macro-coordination with other actors and actors beyond the project also ensures the smooth flow of information, financial resources, and physical operations along the chain and contributes to the successful implementation of projects.

Keywords

References

آذر، عادل و منصوری، سعیده.(1397). زنجیره تأمین خدمات. تهران: انتشارات نگاه دانش.
خلیل‌زاده، رضا؛ سعیدی، پرویز؛ نادریان، آرش و عباسی، ابراهیم. (1400). طراحی الگوی چابک‌سازی مالی و فرآیند زنجیره تأمین. فصلنامه تصمیم‌گیری و تحقیق در عملیات، 6(3)، 445-463.
زهدی، مسعود.(1397). آموزش گام به گام فنون حرفه‌ای در تأمین منابع مالی و سرمایه‌گذاری. تهران: انتشارات شرکت هزاره سوم اندیشه.
فقیهی، ابوالحسن و بامداد صوفی، جهانیار. (1378). کثرت‌گرایی روش تحقیق در پژوهش‌های سازمانی. پژوهش‌های سازمانی، شماره 20/22، بهار و تابستان 78، 54-71.
Baffa, G. (2025). Financing considerations in Africa’s nuclear energy projects. Annals of Nuclear Energy, 214, 1–12. https://doi.org/xxxx
Barkatullah, N., & Ahmad, A. (2017). Current status and emerging trends in financing nuclear power projects. Energy Strategy Reviews, 18, 127–140. https://doi.org/xxxx
Chopra, S., & Sodhi, M. S. (2004). Managing risk to avoid supply-chain breakdown. MIT Sloan Management Review, 46(1), 53–61.
Comet, B. (1996). Project finance: Teaching note. Marin County, CA: The Wharton School.
Fight, A. (2005). Introduction to project finance. Oxford: Butterworth–Heinemann/Elsevier.
Finnerty, J. D. (2013). Project financing: Asset-based financial engineering. Hoboken, NJ: Wiley.
Gatti, S. (2012). Project finance in theory and practice. Amsterdam, Netherlands: Academic Press/Elsevier.
Gatti, S. (2017). Structured finance: Techniques, products and market (2nd ed.). Milan, Italy: Springer.
Gorshkov, R., & Epifanov, V. (2016). The mechanism of the construction of underground structures. In 15th International Scientific Conference on Underground Urbanization as a Prerequisite for Sustainable Development. ScienceDirect. https://www.sciencedirect.com
Hayes, A., & Drury, A. (2021). Project finance. Investopedia. Accessed March 15, 2021. https://www.investopedia.com
Hirschman, A. O., & Lindblom, C. E. (1962). Economic development, research and development, policy making: Some converging views. System Research, 7, 211–222.
Keramat, M. A., Saeednia, H., Alipour Darvishi, Z., & Dehghan Dehnavi, M. A. (2021). Testing and finding a Maskan bank marketing model using an integrated supply chain approach in the construction and housing industry. International Journal of Nonlinear Analysis and Applications, 12(2), 2109–2129. https://doi.org/xxxx
Lindblom, C. E. (1959). The science of muddling through. Public Administration Review, 19(2), 79–99. https://doi.org/xxxx
Liu, H., Ding, H., & Zhou, X. (2020). Research on the internal financing mechanism in the innovation chain. Mathematical Problems in Engineering, Article 8871234. https://doi.org/10.1155/2020/8871234
Lu, Q., Lieu, B., & Yu, K. (2020). Effect of supplier–buyer cooperation on supply chain financing availability of SMEs. International Journal of Logistics Research and Applications. https://doi.org/xxxx
Makarova, V. A., & Hairov, R. R. (2021). Financing innovative projects: Challenges, risks, and opportunities. In Frontier Information Technology and Systems (pp. 185–195). Springer. https://doi.org/xxxx
Mintzberg, H., Raisinghani, D., & Theoret, A. (1976). The structure of unstructured decision processes. Administrative Science Quarterly, 21(2), 246–275. https://doi.org/xxxx
Peng, W. (2019). Industrial chain structure, market competitive advantage, and manufacturing industrial chain financing. Transactions of Forestry, 1(1), 1–6. https://doi.org/xxxx
Subramanian, P. G. (2007). Investment banking. New York, NY: Tata McGraw-Hill Education.
Theoret, A. (1976). The structure of unstructured decision processes. Administrative Science Quarterly, 21(2), 246–275. https://doi.org/xxxx
Yescombe, E. R. (2013). Principles of project finance. Massachusetts, MA: Academic Press.
Yescombe, E. R. (2014). Principles of project finance (2nd ed.). Oxford, UK: Academic Press/Elsevier.
Yescombe, E. R., & Farquharson, E. (2018). Public–private partnerships for infrastructure: Principles of policy and finance (2nd ed.). Oxford, UK: Butterworth-Heinemann/Elsevier.

Files

Share

How to cite

Statistics