Since the publication of the first edition of this book much has happened in international project finance. The financial volatility of crises in emerging markets has had far-reaching implications on project development, finance, and operations. Bilateral and multilateral agencies have introduced more flexible policies to aid this type of financing. And, emerging countries have become more comfortable with long-term contracts designed to support project finance.

This edition incorporates these developments and adds significantly to the first edition. New information has been added on such topics as merchant facilities; multilateral prohibitions on anti-competitive activity; the new OPIC bond financing program designed to enhance emerging market bond issuances; changes in bilateral and multilateral programs; lessons learned from the Dabhol project; mini-perm and amortizing mini-perm financing structures; securitization for project financings; the OECD project finance consensus; and amendments to the U.S. Foreign Corrupt Practices Act.

I am indebted to a many people in connection with the revision of this work. First, to John Berger of Transnational Publishers, my gratitude for continuing to support this book into a new edition. And finally, thank you to the many project financiers who sent me comments, suggestions, and kind words on the book.