Sub-project in Terni (IT)

The Municipality of Terni, is the LP of Sub- project but has also in charge the component "Project financing", because in the last years has developed an interesting and important experience about the Project Financing use. The Municipality of Terni, is studying the Project Financing that can be defined as a WAY OF BULDING PUBLIC WORKS WITHOUT FINANCIAL CHARGES ON PUBLIC ADMISTRATION.

This way of building infrastructures is largely applied in Anglo Saxon Countries, which have a so called "Common Law" legal system.

PF is a complex financial and economic transaction with the aim at a specific investment (building a public work or management of a service), according to a proposal of private contractors (SPONSORS).

The most important experts on PF define it as a FINANCIAL ENTERPRISE WITH THE AIM AT AN ECONOMIC UNITY WHERE THE PRIVATE CONTRACTOR IS SATISFIED TO CONSIDER, FROM THE BEGINNING, CASH FLOWS AND PROFITS FROM THIS ECONOMIC UNITY AS THE ORIGIN OF FUNDS WHICH WILL LET HIM PAY THE LOAN AND WHERE, AT THE SAME TIME, THE ACTIVITY OF THIS ECONOMIC UNITY CAN BE CONSIDERED THE LOAN WARRANTY.

For the above mentioned important aspects, PF is largely spreading throughout Europe and in Italy too.
In EWARU SP the Municipality of Terni, ,developed the Project Financing draft report, . The draft has been developed through the followings points

Origins of Project Financing

Definitions

Base elements of PF

To complete the outputs of the component n 2 the Municipality of Terni has submitted a study on the Project Financing to the University of Perugia, Terni Department. The first interesting results of such study have been introduced on the occasion of a workshop that took place in Terni on the last May, in this meeting the teachers of University of Perugia explained European Laws on Water Management, Economical and Legal aspects of PF

All the study will be summarized up in a publication which now is under preparation (PF Report). The title of the study is : Analysis of Infrastructural intervention implemented in Europe with the method of the Project Financing, analysis of European National rules of Project Financing , as well as regulations

Teachers of University of Perugia expalined European Laws on Water Management, Economical and Legal aspects of PF during the last workshop that took place in Terni on the last 8th June