The objective of this paper is to develop a multi-criteria decision making model for project financing. In the process, state-of-the-art literatures are reviewed on project management, project financing, multi-criteria decision making techniques and models, Analytic Hierarchy Process (AHP), etc. Furthermore, problems related to project selection and financing in the Ethiopian Banks are analyzed in depth by using evaporating cloud diagram as a method. In general, evaluating a project and disbursing finance is one of the most difficult and risky task for employees and also for bankers. The study identified and categorized the main project success factors into seven. They are: technical, market and demand, financial, socio-economic, institutional, discounting, and non-discounting criteria. Under each criterion, sub-criteria are included. By using these criteria as an input, an AHP structure of hierarchy is developed. The research further revealed that the proposed method can reduce decision making process in addition to decision quality. In the case study, the application of the proposed method reduced the decision making process from 6 months to a month.