EP.114 Global Project Finance Series in partnership with SMBC Group PART II - Australia
Energy Unplugged by Aurora
00:00
The Impact of Higher Inflation on Contracting Terms
The input of costs going up in supply chain delays is what is really the focus at the moment. I think in terms of that contracting structure for project finance people need it and the banks need it to have some long term revenue. Unless we can see that the consumers will accept a higher energy price going forward, it will be difficult for some of these projects to get off the ground if they are financed in this way. Those forward future energy prices is kind of more important than inflation,. But the level of the project that can be supported I think is the level of cost that the project can support with increased costs and funding.
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