African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4094

Full Length Research Paper

Risks of project financing of infrastructure projects in Serbia

Slađana Benković, Sandra Jednak, Miloš Milosavljević, Nevenka Žarkić Joksimović and Dragana Kragulj
Faculty of Organizational Sciences, University of Belgrade, Jove Ilića 154, 11000 Beograd, Serbia.
Email: [email protected], [email protected]

  •  Accepted: 06 December 2010
  •  Published: 04 April 2011



In the last fifteen years, governments worldwide adopted project financing as a driving power for conducting and improving infrastructure financing. Project financing is generally used in new, autonomous, complex infrastructure projects accompanied by a huge level of risk and high asymmetry among available information. The primary advantage of the project financing concept lies in the manner in which the capital is raised. This is especially important for the countries that have so far failed to develop their own financial markets, Serbia among them, and their only solution is to import the capital for financing infrastructure projects. The aim of the paper is to point out those risks accompanying the project financing of infrastructure projects in Serbia that can be affected, for the purpose of improving infrastructure and create an environment for a more efficient implementation of this modality of infrastructure projects financing.


Key words: Risk, project financing, infrastructure projects, Serbia.