Company specializing in infrastructure projects

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Infraworks Inc., a company specializing in infrastructure projects is preparing to submit its proposal to the Government of South Africa build a new airport. The project finance will be on a BOT (build-operate-transfer) method. The construction of the airport will take 5-years to complete, and the operations will commence thereafter. Under the agreement, Infraworks will operate the airport for 30-years. The Government of South Africa will finance 30% of the project while the balance fill be financed through a bond-issue and soft-loans from suppliers. To date, Infraworks has entered into agreements with several parties to relation to the project. AfriContractors will be the main contractor for the construction of the project. Two international banks, Nomura and Bank of China will be the lead-managers for a bond issue to finance the project. Huawei Technologies will provide a soft-loan to fund the purchase of all automation and electrification equipment.

Draw up a project financing structure for the highway project and explain its components

Reference no: EM131871600

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