Energo is a company which has always worked on finding new possibilities for investing in improving the decrepit district heating system, so one of the most logical business idea was born. A need to construct a new power plant internally called "Power Plant campus" in the area of the University campus in City district of Rijeka named Vojak. Currently in this area Energo operates existing heating plant also named Vojak which supplies existing households, businesses and University campus with heating energy and hot water. Heating Plant Vojak is powered by medium fuel oil and has a thermal installed power of 14.5 MW. The idea was to build a new high-efficient cogeneration power plant that will be powered by natural gas and will take over all consumers that are currently connected to power plant Vojak and connect new consumer, University Hospital Sušak which is located near the site of the new power plant. University Hospital Sušak has an inefficient and outdated power plant from which currently produces heat for its needs that is also powered by fuel oil, and connecting to high-efficient new power plant will mean higher standard of all day patients, long-term patients and accompanying medical and other staff. As district heating accumulated significant financial losses during the past years, it was clear that there were no internal resources to finance the project, so the company committed to search for external funding. Very soon, European Bank for Reconstruction and Development appeared as an interested party, and after initial negotiations in June 2013, a mandate letter was signed which marked the start of practical work on the project. In the coming months the bank has conducted in-depth financial due-diligence of Energo and the proposed project with the help of international experts in the field of district heating, whose expert findings and reports led to changes and improvements of the project, which bank in the end agreed to finance. As a result, in March 2014 a contract for financing the construction of cogeneration power plant campus was signed. After conducting in-depth analysis of the project conducted by international district heating experts hired by the European Bank for Reconstruction and Development, changes in the project have been made and some elements of the project that did not exist before were added. Considering the fact that all financial analysis that were made by bank considered Energo as whole and not pinpointing project only, this thesis will review all elements of the project and will provide an assessment of the justification of economic and financial evaluation criteria. In addition, the thesis examines the business and legal environment that also defines and ultimately affects the financial justification of the project.