a) A flood may force works at a project site to be suspended temporarily or permanently. How will lenders be repaid since there will be no revenues from the project? [4 marks]

b) At a meeting with a financial advisor, the use of bonds was strongly recommended over bank loans as a source of debt finance for a project. What may explain the financial advisors position on the source of debt? [4 marks]

c) A member of a project team, acting on behave of the contracting authority, does not understand why your financial model must factor in inflation although the inflation has dropped to a single digit. Why should inflation be considered in the financial model although it is on a downward trend?

[4 marks]

d) A building contractor calls the project office and asks if the necessary funds have been secured for construction work to begin. What document is required from the project company to the construction

company for works to begin? [3 marks]

e) Islamic finance is receiving a lot of attention in academic research as well as in global business. With reference to the tenets of Islamic Finance, discuss the appropriateness of Islamic financial products as

sources of project finance.

[5 marks]