Introduction The purpose of this paper is to examine the requirements for special purpose vehicle (SPV) project financing for a large infrastructure project. The project to be financed is a 200-mile underground railroad that will be used by electric trains in the UK. The project will cost approximately 12 billion pounds. Thus, a special purpose vehicle will be necessary to generate adequate funds to complete the project. In this respect, the paper will discuss the project financing process, advantages of using SPVs, and the requirements for a robust business case for using SPVs. Project financing refers to “the raising of funds on a limited recourse basis for the purposes of developing a large-scale capital intensive project through a special purpose vehicle”. Generally, the borrowed funds are often repaid using the revenue from the project. A special purpose vehicle refers to a firm whose “operations are limited to the acquisition and financing of specific assets or projects”. SPVs are usually established as subsidiaries whose assets and liabilities are structured in a manner that makes their obligations secure irrespective of the financial difficulties of their parent companies. The Requirements for a Robust Business Case Using SPVs is likely to have a robust business case if the following requirements are met. First, the sponsors must demonstrate the financial sustainability of the project to be financed. In particular, the goods or services that are to be provided by the project must have a clear demand in order to justify funding. For instance, the railroad must have adequate demand as a transport system in the UK. This will enable the sponsor to collect adequate revenue to repay the loans that will be used to construct it. Thus, the financial sustainability of the project must be examined by modeling the vulnerability of the projected cash flows to macroeconomic changes such as an increase in oil prices. Second, the lenders and sponsors should be able to identify all the major risks that are likely to affect the implementation of the project. The rationale of this requirement is that an unidentified risk cannot be mitigated. Thus, it will inevitably jeopardise the stability of the project, thereby exposing the lenders and sponsors to the risk of losing their investments. Some of the major risks that often affect the stability of large infrastructure projects adversely include completion delays, cost overruns, sponsor’s poor credit worthiness, and limited access to feedstock. The Channel Tunnel in the UK is an example of a major project whose stability was negatively affected due to poor identification of risks before implementation. Specifically, the stakeholders did not agree on the key details of the project and contingency measures were not put in place to cater for improvements such as adding the ventilation system. As a result, the project delayed by nearly 19 months, which in turn caused a cost overrun of approximately $3 billion. Third, accessible financing must be available to ensure a robust business case. The financing arrangements must guarantee high leverage and long tenor to improve the economic viability of the project. High leverage is imp