Financial engineering for civil/structural engineering projects

M.Phil.The provision of adequate infrastructure and the economic growth of a country's highly interrelated population growth and rapid urbanization has placed enormous pressure on existing infrastructure. The provision of new and maintenance of existing infrastructure presents a challenge to the government. In South Africa infrastructure expenditure were generally funded directly from the country's fiscal budgets. Macroeconomic instability and growing investment requirements have shown that public financing is too volatile and rarely meets crucial infrastructure expenditure requirements in a timely and adequate manner. On the other hand, private sector organisations have a larger pool of sources from which to seek funding, equity investors, capital markets, banks etc., this can be from local to international markets. Therefore, private sector involvement in infrastructure provision has been widely used as a preferred method of financing these projects. The South African government can no longer carry the financial burden in it's fiscal policy to finance all the infrastructure projects needed in this country, and it is also up to the private sector to seek funding for projects that will be economical strong enough to service its own debt. Research objectivesobjectives of this study are to give a background of project financing by addressing the risks involved, finance structures, funding alternatives and strategies