I) Why Project FinanceFirstly, it is important to take into consideration the importance of growth and development for the major industries that sustain the economies of countries around the world, and for this, the constant creation and renovation of infrastructures. is absolutely necessary, in order to facilitate and accelerate the growth period of many industries that drive each specific country. The second reason for choosing project financing is due to the scope and necessary means involved in making a business successful in this type of activity: Project financing not only involves significant capital investments, covered most of the time by different lenders or union groups, but also intense and extensive management of risks which must imperatively be managed by a well-formulated plan from day one in order to avoid any type of delay. on projects of such importance.II) What is project financing?a. Definition/RationaleProject finance is a typical way to finance long-term, capital-intensive projects (mining facilities, transportation systems, telecommunications, pipelines, utilities, infrastructure, chemical plants, etc.). Typically, public or private “sponsors” or investors use this method when they do not have sufficient capital or access to traditional financing or do not want to take the risk and responsibility of debt on themselves. . Project Finance allows risk to be shared among many sponsors and separates this project from any other assets that investors may own. The main guarantee of reimbursement is the capacity of the project to generate cash inflows. Project finance, by definition, is a capital-intensive project of such scale and scope that it immediately presented major management challenges...... middle of paper . ..... but the one that seemed most appropriate to me was this: "Never invest in something that if the stock market were to close for ten years, you would not be prepared to hold." » Project finance projects are a great fit. These projects derive the majority of their value from a single asset. This asset is usually something that must be built out of necessity, such as a country's basic infrastructure, namely a functioning road and rail network or bridges to connect high-value industrial areas to the national economy. Value is achieved over the long term of the project, with companies taking every opportunity to increase their internal rate of return through measures such as shareholder lending and generous government grants. So, to coincide with what Mr. Buffet said, project finance investments are a viable long-term investment option..