Agric. Econ. - Czech, 2019, 65(5):212-222 | DOI: 10.17221/258/2018-AGRICECON

Bankability of a public private partnership in agricultural sector: A project in Sub Saharan AfricaOriginal Paper

Donato Morea*,1, Marino Balzarini2
1 Faculty of Economics, Universitas Mercatorum, Rome, Italy
2 IRD Engineering S.r.l., Rome, Italy

A public private partnership can be an effective approach to deal the projects with modern agricultural development in Sub Saharan Africa. A former financial analysis of a development project, carried out by the authors, showed that public and private partners can effectively join in a mutually satisfactory venture capital. The same project is now complemented with a bankability study, considering lenders options, equity allocation, collaterals and likely applicable interest rates, available cash flow and sustainable debt service repayment to provide a through financing scenario for each partner's perspective assessing the relevant Debt Service and Loan Life Cover Ratios. Cash flow and interest rates fluctuation impacts are eventually investigated with a sensitivity analysis to prove the robustness of the proposed scenario.

Keywords: financiability analysis; modern agricultural development projects; project financing

Published: May 31, 2019  Show citation

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Morea D, Balzarini M. Bankability of a public private partnership in agricultural sector: A project in Sub Saharan Africa. Agric. Econ. - Czech. 2019;65(5):212-222. doi: 10.17221/258/2018-AGRICECON.
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