MSc Management and Implementation of Development Projects / Course details

Year of entry: 2021

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Course unit details:
Financing Projects

Unit code MGDI61961
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 Global Development Institute
Available as a free choice unit? No

Overview

The unit aims to develop an understanding of and skill in the analysis and implementation of the different methods and strategies used to finance projects and services, in particular financial sources, financial engineering techniques, financial instruments and their associated risks. It does this within historical and contemporary contexts of project management.

 Circumstances permitting, teaching and assessment will be organized as below with three components:

 1. Coursework assignment to Convenor’s specification

1000 words – individual -25%

2. Workshop group assignment: Cumulative cash flow - 25%

3. Two hour unseen examination - 50%

Aims

The unit aims to develop an understanding of and skill in the analysis and implementation of the different methods and strategies used to finance projects and services, in particular financial sources, financial engineering techniques, financial instruments and their associated risks. It does this within historical and contemporary contexts of project management.

Syllabus

Topics:

1. History of Finance/Microfinance

2. Projects, Services and Strategies

3. Financing Projects in Developing Countries

4. Cash Flow Development and Modelling for Projects

5. Financial Instruments

6. Financial Risks in Projects

7. Applications of Project Finance: Engineering & Instruments

8. Project Appraisal

9. The Private Finance Initiative and bundling of projects

10. Financial Modelling

Teaching and learning methods

Introduction by convenor in first week of semester. Welcome document and method of study sent to all students.

The course unit follows a blended learning strategy including,

a. Introductory session

b. 8 units of self-directed learning activities, based on online units of work, supported by online discussion board and tutor

c. 21-hour block online teaching event over three days, including a mix of formal presentations, individual and group workshop activities based on case studies available via the Intranet, and assessed work

Knowledge and understanding

- describe how projects and services are financed and how finance is managed in different types of projects

· understand the different types of financial risks associated with investments in projects and services

· describe how projects are procured under the PFI in terms of stand alone projects, joint ventures (PPPs) and services sold and the concept of bundling of projects

· understand the importance of finance in a project and how the financial package determines the commercial viability of a project

Intellectual skills

- determine sources and financial instruments used in project finance such as long term and short term debt, mezzanine finance such as bonds and swaps, equity and aid

· evaluate different contract strategies utilised to procure projects under public / public-private / private financing routes

· analyse projects procured by project finance in terms of their viability and sustainability and the use of Microfinance

· develop a financial plan for a project linked to the construction, operation, financial package and revenue generation elements of the project

Practical skills

· apply financial engineering techniques to make a project viable based on the project’s cash flows

 

Transferable skills and personal qualities

- Problem solving

- Ability to conceptualise and manage financial planning in a range of project contexts

- Skills in the presentation of the outputs of a financial/risk assessment

Assessment methods

Method Weight
Other 25%
Written exam 50%
Written assignment (inc essay) 25%

Feedback methods

Feedback to students will be provided via online discussion board, workshop discussion and via Blackboard.

Recommended reading

Core text:

Merna, T. & Al-Thani, F. F., (2018) Financing Infrastructure Projects, (Second Edition) ISBN 978-0-7277-6336-5, ICE Publishing, London

Additional texts:

Merna, T., Chu, Y., and Al-Thani, F. F., (2010) Project Financing in Construction – A structured guide to assessment, Wiley-Blackwell, ISBN 978-1-4443-3477-7

Merna, A. and Owen, G., (1998) Understanding the Private Finance Initiative, 1st Edition, ISBN 962 360 031 3,

Merna, A. and Njiru, C., (1998), Financing and Managing Projects, 1st Edition, ISBN 962 936 051 9,

Merna, T. and Dubey, R.,  (1998) Financial Engineering in the Procurement of Projects, 1st Edition, ISBN 962 936 052

Study hours

Scheduled activity hours
Tutorials 21
Work based learning 8
Independent study hours
Independent study 121

Teaching staff

Staff member Role
Anthony Merna Unit coordinator

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