Risk Sharing in Infrastructure Project Finance

Fikri Kaplan
THK University
Turan Erol
İstanbul Sabahattin Zaim University


The subject of this study is to try to model the Islamic project finance methods of the long-term operation and financing processes of capital-intensive infrastructure projects. The research aims to create a model with mathematical formulas by considering the project finances on a measurable level. What is the project financing that can be considered under this roof while we are preparing our research, which is the framework of infrastructure projects? Can infrastructure projects be carried out in accordance with Islamic rules? Can Islamic infrastructure finance models be modeled mathematically? A core analysis was made by going from general concepts to specific by trying to find answers to their questions. While the research is evaluated from an Islamic perspective, it is emphasized that the two most common problems in long-term project finances are preventing the formation of the concepts of interest and obscurity (garar). In this direction, the research was evaluated in two ways and the project contract was evaluated separately for the parties. Stochastic processes formulated with the concept of measurability were theoremized with the data obtained and mathematical proofs of these theorems were made in the research. As we move towards the conclusion of the research, our model, which is also proved by theorems, and the maximum number of possibilities that we can use our formulas are evaluated, the necessary analysis is made within the framework of these possibilities, numerical examples are given, and all variations are explained by schematizing under appropriate conditions. The fact that the real data required by the mathematical method we used in our research is not published openly and surveys etc. Since it is not possible to obtain the data in different ways, some projections were made with the limited data obtained, and the data set was tried to be expanded. In our research, it has been determined that infrastructure projects are mathematically measurable, verifiable and modelable by using risk sharing methods in accordance with Islamic rules.

How to cite this book

Kaplan, F. & Erol, T. (2023). Risk Sharing in Infrastructure Project Finance. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub46



March 2, 2023