The project finance industry has undergone many changes and challenges since the first edition of this book was written in 1997. During this time, there has been an amazing growth in project finance among multilateral and bilateral agencies, governments, financial institutions, rating agencies, and development companies. The financing of infrastructure projects in developing countries was in its infancy in 1997 and since then has experienced many great successes and a few failures.

Project finance is now a recognized course offering at business and law schools throughout the world. As seen in the Select Bibliography to this edition, the scholarly research is expanding, as are general books about project finance.

This third edition is a complete update of the first and second editions, including all of the major developments in project finance over the past decade. It is my hope that this book will continue to be useful as a college course book for students sufficiently curious to wonder what project finance is about, a training tool for those thrown into the world of project finance, a research tool for those needing a project finance treatise, and a structuring and drafting tool for those involved in transactions, including project finance counsel, lenders, government agencies, project sponsors, and equity investors.