Large construction projects require a great deal of money to get going, even in the planning phase. When it comes to financing these projects, there can be several parties involved in accumulating the required funding.
One such party is often a private sector partner. This is often a corporation or a limited partnership created for the sole purpose of the particular project. This party is at the centre of all contracts, borrowings and the construction and operation of the project.
Another party that is almost always involved is the project sponsor. This is someone who takes on the role of managing the project. The project sponsor owns the project and will receive profit, either as a result of the ownership or via management contracts, if the project succeeds. The project sponsor often has to cover certain liabilities or risks of the project by providing guarantees or by entering into management or service agreements.