School of Engineering and Technology, (SET)
 
CE70.43 : Project Financing  3(3-0)
 
Course objectives:

The objective of this course is to provide advanced knowledge and experience in the formulation of project financing, structuring of Special Purpose Vehicle (SPV) to raise funds to finance capital investment project, designing the interactions of project participants for effective financial operations, and understanding Public Private Partnerships (PPP) for infrastructure project development.
 
Learning Outcomes:

On completion of this course, the students would be able to:

  • Analyze corporate and project financial data to understand financial situations including investment, operation, and financing situations
  • Perform value chain analysis for project investment through business and stakeholders’ modeling
  • Develop spreadsheet of financial models containing key financial transactions and ratios throughout project life cycle
  • Structure Special Purpose Vehicle (SPV) incorporating business, financial, and contractual models
 
Pre-requisite(s):

None.
 
Course Outline:

I.      Principles of Project Financing
        1.    Introduction to Project Financing
        2.    Project Financing Versus Direct Financing
        3.    Corporate Financial Strategic Planning
        4.    Structuring Project Finance
        5.    Design of SPV Structures
        6.    Project Financial Strategy

  II.   Investment Decision Makings and Financial Modeling
        1.    Investment Decision Makings
        2.    Sources of project finance
        3.    Financial Modelling: cash flow projection and key financial ratios
        4.    Project Sensitivity and Scenarios Analysis
        5.    Outcome of Corporate Investment

III.    Public Private Financial Initiatives and Project Risk Management
        1.    Public Private Partnerships (PPP): financing structure and analysis models
        2.    Project agreements: roles and contractual responsibility and agreement
        3.    Risks in Project Finance
        4.    Risk Classifications
        5.    Contracts and Risk Transfer
 
Laboratory Sessions:

None.
 
Learning Resources:

Textbook:

Esty, Benjamin C. (2004). Modern Project Finance: A Case Book, John Wiley & Sons, Inc., USA.
 
Reference Books:

1. Davis, H. A. (2003). Project Finance: Practical Case Studies 2nd Edition, Vol 1 and 2, Euromoney, London.

2. Finnerty, J. D. (2013). Project Financing: Asset-Based Financial Engineering 3rd edition, John Wiley&, Inc., USA.
 
Journals and Magazines:
  • Journal of International Money and Finance, Elsevier
  • Journal of Structured finance, Institutional Investor Journals
  • Engineering Construction and Architectural Management, Emerald
  • International Journal of Project Management, Elsevier
  • Property Management, Emerald
 
Time Distribution and Study Load:

Lectures:                                  45 hours

Self-study:                              115 hours

Assignments and Projects:      20 hours
 
Teaching and Learning Methods:

Mass Instruction: Lectures, Class room exercises and presentations

Individualized Learning: Individual homework assignment is given weekly to develop comprehension and analytical skills.

Group Learning: A real-life project is given for group of students to analyze success and failure factors so that systematic improvement can be recommended.
 
Evaluation Scheme:

Home Assignments:                          10%

Group Project:                                   20%

Class Participation:                             5%

Mid Semester Exam (Open Book):   25%

Final Exam (Open Book):                 40%

 

“A” will be awarded if a student can demonstrate clear understanding of the topics learned in class, has integrated knowledge of the course, can apply the knowledge appropriately in the project/case study, and actively contribute in class discussion.

“B” will be awarded if a student can demonstrate basic understanding of the topics learned in class, can apply the knowledge in the project/case study, and contribute in class discussion.

“C” will be given if a student can demonstrate partial understanding of the topics learned in class, can apply the knowledge in the project/case study, and quiet during class discussion.

“D” will be given if a student demonstrates lack of understanding of the topics learned in class, cannot apply the knowledge appropriately in the project/case study, and cannot contribute in class discussion.
 
Instructor(s):
SECTION NAME
H Dr. Chotchai Charoenngam