School of Engineering and Technology, (SET)

Financing project is vital for development of any organizations. This course provides advanced knowledge and experience in the formulation of project financing. The focuses are on structuring of Special Purpose Vehicle (SPV) to raise funds to finance capital investment project and to design the interactions of project participants for effective financial operations. Upon completion of this course, students will have the knowledge to develop effective methods for project financing and managing the risks associated.

Applications of project finance, sources of project finance, analysis of project viability and risk analysis, project financial modelling and evaluation, project agreements, finance documents and agreements, Public Private Financial Initiatives for infrastructure projects, and case studies.

None.

I  Financing Development Project

1. The Rationale for Project Financing
Project Financing Versus Direct Financing
2. Financing for Project Development Stages
3. Sources of project finance
4. Public Private Infrastructure Partnership: financing structure, analysis models, roles and responsibility.


II  Project Financial Viability

1. Viability analysis: technical feasibility, economic and financial viability, analysis tools and techniques
2. Project risks: technological risk, economic risk, financial risk, currency risk, completion risk, raw and material supply risk, political risk environmental risk, force majeure risk
3. Project Finance Structure: traditional and public-private partnership structure.
4. Institutions: commercial banks, the World Bank Group, international development Banks, government, and bilateral institutions.
5. Equity and debt market: international market, long term-debt market, supplier credits, infrastructure investment funds.

III  Financial Modelling

1. Financial analysis: cash flow projection, sensitivity analysis, discounted cash flow analysis, measuring expected rate of return, project's debt capacity.
2. Project agreements: shareholders agreement, concession and off-take agreements, construction contract, resource supply agreement, O&M agreement

 

Lecture notes and handouts provided by the instructor.
Finnerty, J. D. (1996). Project Financing: Asset-Based Financial Engineering, John Wiley&, Inc., USA .
Khan, M. F., and Parra, R. J. (2003). Financing Large Project: Using Project Finance Techniques and Practices, Prentice Hall , Singapore .

Journal of international finance, journal of structured finance, Engineering Construction and Architectural Management, International Journal of Project Management, Project Management Journal, etc.

The grading system may change (without prior notice).  The Instructor will inform the grading system in the first day of the class

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