Financing The Ok Tedi Mine--Case Study Of The Process From A Government Perspective

This case-study of the financing of the Ok Tedi project illustrates the nature of project financing and outlines the arrangements made in the case of this project; it also demonstrates that the limitation of financial exposure is an important goal for Governments involved in developing the resources sector. The account includes a chronological description of the process by which the sponsors prepared for the financing of the project and the lenders became involved in it. The type of security arid loan documentation required for such financing is described, together with a broad analysis of their content and the manner in which the various risks involved in development are apportioned among the sponsors and lenders. The ability to apportion and limit financial liability is an important development for the owners of capital and resources.