Different conditions • understand key financial concepts used by project finance investors, lenders, and analysts • carry out comprehensive risk analyses and assessments from various perspectives • develop familiarity with key project finance contracts and documentation course offering location: washington, dc. Project finance: concepts & applications is a powerful introduction to industry concepts, transaction processes, risk analysis, and typical deal structures, and supports participants with a framework for commercial transaction analysis in an intensive one-day seminar and workshop, you will acquire the skills to expertly. Definition of project financing: loan arrangement in which the repayment is derived primarily from the project's cash flow on completion, and where the project's assets, rights, and interests are held as collateral. The concept of project finance requires the sponsors to adopt a unique organizational structure in the form of a stand-alone project company (that is, a special purpose vehicle, spv) which will enter into a ppp agreement with the government to design, build, and operate the project this spv has a finite life that equals the.
Overview this course provides an introduction to: (1) the basic concepts and techniques of project finance and (2) the current application of these techniques to the funding of ppp and other projects in infrastructure and other key economic sectors it will focus on areas critical to the success and sustainability of major. 32 valuation and the project company as a single-asset business 33 capital budgeting decisions key concepts 4 managing risk in project finance transactions 41 the project cycle revisited 42 risk management approaches 43 the project company and risk identification 44 risks in the construction phase 45 the. This comprehensive workshop will help participants to understand the basic concept of project financing, the way it is getting finance in today's context and how the challenges would be met in the future this proactive workshop would inform the attendees about the future methods of financing and give such justifications for.
This section introduces key concepts of project finance, typical project finance structure, off-balance-sheet and non-recourse financing. Project finance is the long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of its sponsors usually, a project financing structure involves a number of equity investors, known as 'sponsors', a 'syndicate' of banks or other lending.
Project finance is a long-established technique for non recourse financing which is extremely relevant today, with more and more infrastructure and other large projects being developed professor gatti and the other contributors use practical concepts and very relevant case studies to clearly explain project financing to its. This annex introduces some basic concepts of project finance and shows how they relate to the financing structure of ppp projects it is not meant to cover all the issues relevant to ppp financing structures, which are many complex and often project-specific authorities should rely on the expertise of financial and legal.
Basic concepts of project financing dr david s y cheng, faculty (business) upper iowa university – hong kong campus abstrast project financing is a specific financial arrangement for a selected project project involves construction of an engineering undertaking repayment can be arranged in. The principles of project finance reviews the technique of project finance it explores, step-by-step, the key ingredients of the concept the book is aimed at a business savvy audience, but one which is not necessarily up to speed on the concept, and has a global reach by covering both oecd countries and the emerging. Essentially all lawyers will at some point in their career, whether directly in their professional life or in their personal activities and involvements, touch upon some aspect of project development and financing of that project the techniques and concepts used in project finance and development practice will be of use to. Course outline what we will cover ▫ about the doe office of indian energy education initiative ▫ concepts for financing renewable energy projects on tribal lands - levelized cost of energy (lcoe) - business structures - tax- equity partnerships – introduction ▫ additional information and resources 2.
Instructor bruce watson explains four financial concepts that will help any manager better understand how all companies function npv compares the initial costs of a project with the total value of future revenue from that project because the future revenue is worth a different amount than if that revenue were earned today. 3 primer organization 3 definition of project finance 4 types of project finance techniques 6 bond and debt financing terms 6 loans and credit assistance terms 7 evolution and history of project finance and federal role 7 chapter 2: bonds and debt financing 9 definition and concepts 9 corporate bonds.
Defined by the international project finance association (ipfa) as the following: the financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse financial structure where project debt and equity used to finance the project are paid back from the cashflow. What brings added relevance to this work is the skilful manner in which author elucidates several key concepts related to project financing without focusing on any specific industry thus widening the scope of application for these broad- based principles some case studies are also utilized to help understand the principles. This course begins with an understanding of the various ways a project can originate and then dives deep into the concept of feasibility studies you'll review a few financing models and then look at the participants in a project finance deal and understand their motivations you'll learn about lenders, who are one of the most. The course will address the rationale for this type of financing and examine project risk analysis, risk mitigation strategies, financing options, and legal/ regulatory/industry frameworks the course will address cash-flow modeling concepts for project finance but will not engage in the mechanics of modeling techniques.