Project financing involves non-recourse financing of the development and implementation of a particular project in which the lender looks principally to the revenues expected to be generated by the project for the repayment of its loan and to the assets of the project as collateral for its loan rather than to the general credit of the project sponsor.

Traditionally, project principals bore the entire risk of projects. The advantage of the project finance method is that the various risk factors inherent to projects can be shared by the various parties, (including financial institutions) which are able to control these risks most appropriately. In this way, project risk can be both spread and reduced. In recent years there has been a rapid increase in the number of companies opting for project finance. There are two basic reasons for this trend. First, improved risk control is needed for large-scale projects. Second, access to finance can be facilitated by isolating good projects from the reduced credit status of business corporations.

KPICO uses different models of financing such as B.O.T., B.O.O., B.O.O.T., B.L.T. in order to finance different projects.