Let's see how project finance is different. Project finance has a long history. Probably the earliest example of project finance as we know it today, was a silver mine funded in the United Kingdom in the 12th century. But there are also other big examples like railways in Argentina and also in Colonial India. Suez Canal probably is one of the biggest historical project finance projects that's ever been undertaken. In modern times project finance grew enormously after the 1974 financial crisis, and that was because a lot of the projects weren't able to be financed just by the credit standing of the sponsors or government. And a specific financing need to be designed around the cash flows of the project. There are a few key issues that make project finance different. Firstly, there's no, or typically limited recourse back to the stakeholders. Recourse means the ability of the lender to take action, and we'll explore it fully a bit later. There's no review of sponsor's credit worthiness. These facts often mean that the actual project and critically its financing is off balance sheet. There may well be some credit enhancement things that make the debt safer for the lender, such as guarantees from the sponsors. But broadly speaking, the project stands on its own from a financial perspective. All the debt repayment comes from the project's cash flows, which because of that need to be very predictable. So project finance works for projects and in industries where you can easily predict future cash flows, and if the existing risks of the project where possible need to be passed on to stakeholders who are better able to manage those risks. Let's compare project finance with regular finance. With regular finance. Once a company or a government undertakes a project, the project's assets sit on the company's balance sheet. The financing of the project will be intermingled between the debt financing and equity financing of the corporation, so there's no separation. Furthermore, lenders are gonna have recourse not just to the project assets, but to all the organization's assets. So the credit decision will be not just for the project, it'll be for the whole entity. Now, compare this to Project Finance here the corporation has its own balance sheet, its own assets and its own financing, but the project is completely separated, so there's no recourse between the corporation or sponsoring body and the project. The project, as you can see, has its own specific financing. It's usually off balance sheet, primarily because the risks have been transferred. If the project goes wrong, the lenders can't take action against a corporation or sponsoring body. As a consequence of this, particularly where cash flows are very predictable, projects will have higher leverage, significantly higher than regular corporate financing.