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MSc Management of Projects

MSc Management of Projects

Year of entry: 2019

Course unit details:
Project Finance for Infrastructure Projects

Unit code MACE60023
Credit rating 15
Unit level FHEQ level 7 – master's degree or fourth year of an integrated master's degree
Teaching period(s) Semester 1
Offered by School of Mechanical, Aerospace and Civil Engineering
Available as a free choice unit? No

Overview

Project Finance will provide students with a good understanding of the different ways of financing infrastructure projects (airports, roads, bridges, power plants, schools etc). This unit involves the
• study of topics and applications which broaden and enhance the degree/PDP unit in which students are likely to hold an

Aims

The programme unit aims to:
1. Introduce the field of project finance and the typical types of projects for which project finance is used.
2. Identify how to structure a project finance project, how to raise finance and the typical financial instruments

Syllabus

The course runs over 12 taught weeks. Each week there will be a lecture to introduce key topics. The topics will be illustrated with case studies from actual project finance projects to show how the theory can be applied in real situations. Topics studied are listed below:

1. Introduction to Project Finance – What project finance is, how it is different to corporate finance and the typical types of project on which project finance is used.
2. The contractual structure of a typical project finance project – the different ways of structuring a project finance deal, who the main parties are and their respective roles in the project, how the structure is used to manage risks in the project
3. Financial instruments, markets and institutions used in project finance – Understanding the costs and revenues in a project finance project and the preparation of a project cash-flow. Appreciation of the different types of financial instrument and when to use each one. The role of financial institutions and markets in project finance
4. Evaluating a project finance project – The steps involved in raising finance for a project finance deal and closing the deal.
5. Risk management and financial engineering as a tool of risk management - how to identify, assess and mitigate the risks in project finance projects – four different risk types (construction, operation, financial and political).
6. Insurance and Bonding in project finance – the role of insurance and guarantees in project finance, the different types of insurance and guarantees.
7. Restructuring projects – the different forms of project restructuring and when to use them.
8. Build Operate and Transfer (BOT) and the Private Finance Initiative(PFI) – How these forms of project finance work, their advantages and disadvantages and examples of their use.
9. Project Finance in Developing countries – the specific challenges facing project finance in developing countries and how these may be overcome

Students will also analyse six real world case studies of project finance projects throughout the semester.  Each case study will be followed by a Blackboard Quiz.  The first case study quiz will be formative and will not be graded; the subsequent 5 case study quizzes will be graded.  The 5 graded quizzes, in total, are worth 20% of the unit marks. 

Knowledge and understanding


 

Intellectual skills


 

Assessment methods

Method Weight
Written exam 80%
Written assignment (inc essay) 20%

Feedback methods

Instantaneously via Blackboard Grade Centre

Study hours

Scheduled activity hours
eAssessment 24
Lectures 24
Tutorials 2
Independent study hours
Independent study 100

Teaching staff

Staff member Role
Patrick Manu Unit coordinator

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