Bankability by design: structuring hydropower projects for financial close

Hydropower projects do not fail due to a lack of resource potential, but because they are not structured to meet the expectations of investors and lenders. Reaching financial close requires more than capital. It depends on assembling the right combination of partners and allocating risks in a way that makes the project bankable.

This session will explore how hydropower projects are structured to unlock financing, focusing on the interplay between sponsors, governments, development finance institutions, and commercial lenders. Drawing on real-world examples, including projects developed across borders, the discussion will examine how different stakeholders contribute to managing construction, political, and revenue risks, and how these risks are translated into financial terms.

Rather than focusing solely on sources of capital, the session will take a holistic view of project structuring, highlighting how credible sponsors, robust contractual frameworks, and effective public-private collaboration create the conditions for investment. Participants will gain practical insights into how projects move from concept to financial close, and what differentiates successful projects from those that remain in the pipeline.

Session Objectives

• Identify the key stakeholders required to structure a bankable hydropower project  
• Understand how risks are allocated across sponsors, governments, and lenders  
• Explore which alternative financing models to traditional project finance exist and in which contexts do they offer benefits    
• Examine how project structures influence investor confidence and financing outcomes  
• Explore the role of public actors and development finance in enabling private investment  
• Analyse practical examples of projects that have successfully reached financial close  
• Highlight replicable structuring approaches applicable across different markets
• Explore which alternative financing models to traditional project finance exist and in which contexts do they offer benefits