CESCE covers political and commercial risks for transactions financed with the sole guarantee of the resources the project may be able to generate.

Risks covered and maximum cover percentages

  • Political Risks: Depending on the project
  • Commercial Risks: Depending on the project

Insurance Detail

  1. Project Finance is a financing scheme for a specific Project where the sole source both of repayment of the loans and of the return on shareholder investment is the project’s capacity to generate sufficient funds.
  2. The key figure is the Project Company created to execute the project and holder of all the project’s assets and liabilities.
  3. The company is financed, on the one hand, by its partners with capital...>
  4. …. and, on the other, with bank loans.
  5. The project involves contractors in charge of the final development of the production facilities, generally via a turnkey contract or input material suppliers, usually linked to it by way of long terms contracts (THE EXPORTERS).
  6. The production is sold on the market inasmuch as possible by means of long term sales contract.


"PUBLIC” PROJECT FINANCING: the Project Company is created in order to develop the activity it is entrusted with either directly by the State, through a concession agreement, or a public company, by way of agreements or contracts.

There are various modalities and typical structures for such sectors as electricity generation and transmission, provision of transport services, telecommunications, etc. In these the product selling price or the tariffs are usually determined by the public authorities.



CESCE covers political and commercial risks through the Buyer Credit Policy (See the section on Buyer Credit Policy).

Additional documentation needed for the assessment of the transaction:

  • Full independent financial feasibility report
  • Market survey
  • Detailed description of the financial structure
  • Evaluated technical feasibility study
  • Environmental impact study (if appropriate)
  • Legal opinion of an independent law office


Their contribution or debt to the project company may be covered by means of the Foreign Investment Policy. (See the section on Foreign Investment Insurance).