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This research project investigates the relationship between a particular technique of financing large projects in developing countries and the potential social and environmental costs of implementing this technique. 'Project finance' aims to protect the enterprises building and operating projects from financial liability to lenders, shifting liability for debt primarily or entirely to the project itself. Lenders have little or no recourse to other sources of security.

We assess the commercial incentives and economic benefits against its potential social and environmental costs. The pressures in project finance to generate revenue, and the legal frameworks within which this is made possible, can limit the ability of a host government to satisfy its obligations to protect local people’s livelihoods, their human rights and recognized environmental standards.

This project analysis the relationships between host governments, multinational enterprises investing in host states and international lending bodies, insofar as each affects the balance between these commercial and non-commercial considerations. We focus on a common set of research questions that aim at understanding the present nature and effects of project financing, and in order to consider possible avenues for reform and future strategies which will ensure that project finance is supportive of human rights and sustainable development.

Award/Grant Outputs and Documents
Click on to download the document.	Number of Documents: 10

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