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The independent creditors will likely offer financial loans to Salvatore and Sons for further more funding. Therefore, Salvatore and Sons will face insolvency in the event of project failure, but Salvatore Oil (project sponsor) is not liable for the former’s personal visit the site debt repayment. 

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Please Observe that industries which has a predictable current market and less complex risks (electricity era, infrastructure, and oil manufacturing) Ordinarily benefit from this financing technique. On top of that, the project stays off the harmony sheet for both equally sponsors plus the host administration. 

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