NEW APPROACH FOR TACKLING THE INFRASTRUCTURE PROJECTS FINANCING CHALLENGES Project Finance Self-Sufficiency (PFSS) concept

To keep pace with the projected global development, a huge investment in infrastructure projects (Transportation, Urban Infrastructure, energy and etc.) will be required. In this way, achieving innovative solutions is essential.Although there are various sources of finance such as public-private partnerships, tax-increment financing, development charges, value-capture taxes, loans and etc., but regarding to limitations insufficient sources, appropriate project financing remains as a serious challenge. So for solving the project finance barriers, in line with the resources side, Project side also shall be considered. Nature of the project, design types, procurement flexibility, completion phase and …, shall be reviewed based on a new paradigm that leverage and support project financing. In fact, project stakeholders need to select finance solution in tradeoff between searching suitable finance resource and revising project structure and processes.The aim of the paper is to provide a new approach for project financing. In this way, this paper presents an overview of practices and challenges related to financing infrastructure projects, it also suggests a new paradigm that helps receiving Sufficient Funds from Project itself that is called Project Finance Self-Sufficiency (PFSS). This approach emphasize areas such as Phasing Project for Step-by-Step Operation, Engineering Design based on Independent Earnings per Phase, using Multi-purpose Design Approach, applying Domino Concept (that means the Financial Power of each phase could be provided for next phase financial needs and guarantees).

Keywords:

project financing , project management , financial modeling , private finance , self Sufficiency , project structure and processes