11. Project financing Project financing is a financing technique in which large projects, such as infrastructure projects, natural resources projects, pipelines, energy explorations projects, and so on, are financed by a lead sponsor for the project. The financier expects to receive payments based on the cash flows generated from the project itself. The Eurotunnel, which runs between Great Britain and France, is an example of a project financed using this technique. In project financing, the lender has control over the project's assets and cash flows. Thus, compared with conventional debt financing, will the project financing tend to have higher or lower costs? Higher O Lower Consider the following two statements: Statement A Project financing requires that managers reveal proprietary information to all investors. Statement B Project financing allows firms to maintain confidentiality. Based on your understanding of project financing, which of the following statements is true? O Statement B O Statement A