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Project Finance in Theory and Practice: Designing, Structuring, and Financing Private and Public Projects 2nd edition [Kietas viršelis]

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(Professor, Bocconi University, Milan, Italy and consultant for banks and manufacturing firms in Italy and a trainer for managers and government members in Russia, Africa and China)
  • Formatas: Hardback, 496 pages, aukštis x plotis: 235x191 mm, weight: 1200 g, Illustrated; Illustrations, unspecified
  • Išleidimo metai: 26-Sep-2012
  • Leidėjas: Academic Press Inc
  • ISBN-10: 0123919460
  • ISBN-13: 9780123919465
Kitos knygos pagal šią temą:
Project Finance in Theory and Practice: Designing, Structuring, and Financing Private and Public Projects 2nd editionDidesnis paveikslėlis
  • Formatas: Hardback, 496 pages, aukštis x plotis: 235x191 mm, weight: 1200 g, Illustrated; Illustrations, unspecified
  • Išleidimo metai: 26-Sep-2012
  • Leidėjas: Academic Press Inc
  • ISBN-10: 0123919460
  • ISBN-13: 9780123919465
Kitos knygos pagal šią temą:
Pastovi nuoroda: https://www.kriso.lt/db/9780123919465.html
Raktažodžiai:
The first edition was completed in June 2007, just before banking crimes plunged the world into a financial disaster that is still working its way through poorer countries. The result is that the approach to finding and structuring a deal to finance a large construction project is very different now for all parties: project sponsors, banks, investors in infrastructure, project bondholders, and public authorities. Gatti (banking and finance, Bocconi U., Milan) takes all this into account in the second edition of his guide for researchers, practitioners, and students in finance. Academic Press is an imprint of Elsevier. Annotation ©2012 Book News, Inc., Portland, OR (booknews.com)

This book presents comprehensive coverage of project finance in Europe and North America.  The Second Edition features two new case studies, all new pedagogical supplements including end-of-chapter questions and answers, and insights into the recent market downturn.  The author provides a complete description of the ways a project finance deal can be organized-from industrial, legal, and financial standpoints-and the alternatives available for funding it.  After reviewing recent advances in project finance theory, he provides illustrations and case studies. At key points Gatti brings in other project finance experts who share their specialized knowledge on the legal issues and the role of advisors in project finance deals.



*Forword by William Megginson, Professor and Rainbolt Chair in Finance, Price College of Business, The University of Oklahoma

*Comprehensive coverage of theory and practice of project finance as it is practiced today in Europe and North America

*Website contains interactive spreadsheets so that readers can input data and run and compare various scenarios, including up to the minute treatment of the cutting-edge areas of PPPs and the new problems raised by Basel II related to credit risk measurement

This book presents comprehensive coverage of project finance in Europe and North America. The Second Edition features two new case studies, all new pedagogical supplements including end-of-chapter questions and answers, and insights into the recent market downturn. The author provides a complete description of the ways a project finance deal can be organized-from industrial, legal, and financial standpoints-and the alternatives available for funding it. After reviewing recent advances in project finance theory, he provides illustrations and case studies. At key points Gatti brings in other project finance experts who share their specialized knowledge on the legal issues and the role of advisors in project finance deals.



*Forword by William Megginson, Professor and Rainbolt Chair in Finance, Price College of Business, The University of Oklahoma

*Comprehensive coverage of theory and practice of project finance as it is practiced today in Europe and North America

*Website contains interactive spreadsheets so that readers can input data and run and compare various scenarios, including up to the minute treatment of the cutting-edge areas of PPPs and the new problems raised by Basel II related to credit risk measurement

Recenzijos

"Professor Gatti offers the reader an original viewpoint combining rigorous theory with constant reference to market best practices." --Roberto Albisetti, IFC World Bank Group and University of Genoa

"Gatti's book provides comprehensive and coherent coverage of project finance, including transaction structures, the institutional environment, and financial analysis. Its presentation of practical examples and cases makes it a great teaching tool." --Raymond Hill, Emory University

"A good read as well as an excellent reference book, Project Finance in Theory and Practice is very valuable as it is successfully pitched to be useful to readers of all levels of education and experience and explains the roles and objectives of the different parties very clearly. The book can be used both for training and as a guide to best practices." --Alexander S. Moczarski, President and Chief Executive Officer - Guy Carpenter - Marsh & McLennan Group

"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 readers. It is a must read and a reference book for professionals and practitioners." --Jean Pierre Mustier, UniCredit Deputy General Manager and Head of CIB Division

Daugiau informacijos

Provides a complete description of the ways a project finance deal can be organized - from industrial, legal, and financial standpoints and the alternatives available for funding it
Preface to the Second Edition xv
Preface to the First Edition xix
Scannapieco's Foreword xxiii
Foreword xxv
About the Author and the Contributors xxix
Chapter 1 Introduction to the Theory and Practice of Project Finance
1(26)
Introduction
1(1)
1.1 What Is Project Finance?
1(1)
1.2 Why Do Sponsors Use Project Finance?
2(2)
1.3 Who Are the Sponsors of a Project Finance Deal?
4(7)
1.3.1 Industrial Sponsors in Project Finance Initiatives Linked to a Core Business
4(1)
1.3.2 Public Sponsors with Social Welfare Goals
4(4)
1.3.3 Contractor/Sponsors Who Develop, Build, or Run the Plant
8(1)
1.3.4 Financial Investors
9(2)
1.4 Overview of the Features of Project Finance
11(3)
1.4.1 The Contractor and the Turnkey Construction Contract (TKCC)
12(1)
1.4.2 Operations and Maintenance Contractor and the O&M Agreement
12(1)
1.4.3 Purchasers and Sales Agreements
13(1)
1.4.4 Suppliers and Raw Material Supply Agreements (RMSAs)
13(1)
1.4.5 Project Finance as a Risk Management Technique
13(1)
1.5 The Theory of Project Finance
14(13)
1.5.1 Separate Incorporation and Avoidance of Contamination Risk
15(4)
1.5.2 Conflicts of Interest between Sponsors and Lenders and Wealth Expropriation
19(2)
1.5.3 Project Finance in the Academic Literature
21(6)
Chapter 2 The Market for Project Finance: Applications and Sectors
27(16)
Introduction
27(1)
2.1 Historical Evolution of Project Finance and Market Segments
27(2)
2.2 The Global Project Finance Market
29(5)
2.3 The Evolution of the PPP Market
34(9)
2.3.1 The European Market
37(6)
Chapter 3 Project Characteristics, Risk Analysis, and Risk Management
43(34)
Introduction
43(2)
3.1 Identifying Project Risks
45(12)
3.1.1 Precompletion Phase Risks
45(1)
3.1.1.1 Activity Planning Risk
45(1)
3.1.1.2 Technological Risk
46(1)
3.1.1.3 Construction Risk or Completion Risk
46(1)
3.1.2 Postcompletion Phase Risks
47(1)
3.1.3 Risks Found in Both the Pre- and Postcompletion Phases
47(1)
3.1.3.1 Interest Rate Risk
48(1)
3.1.3.2 Exchange Rate Risk
49(1)
3.1.3.3 Derivatives Contracts for Managing Interest Rate Risk and Exchange Risk
49(3)
3.1.3.4 Inflation Risk
52(2)
3.1.3.5 Environmental Risk
54(1)
3.1.3.6 Regulatory Risk
55(1)
3.1.3.7 Political Risk and Country Risk
55(1)
3.1.3.8 Legal Risk
56(1)
3.1.3.9 Credit Risk or Counterparty Risk
57(1)
3.2 Risk Allocation with Contracts Stipulated by the SPV
57(18)
3.2.1 Allocation of Construction Risk: The Turnkey (or Engineering, Procurement, and Construction [ EPC]) Agreement
58(2)
3.2.2 Allocation of Supply Risk: Put-or-Pay Agreements
60(1)
3.2.3 Allocation of Operational Risk: Operations and Maintenance (O&M) Agreements
61(1)
3.2.4 Allocation of Market Risk
62(2)
3.2.4.1 Offtake Agreements
64(1)
3.2.4.2 Offtake Contracts in the Power Sector
64(7)
3.2.4.3 Offtake Agreements in PPP Initiatives
71(4)
3.3 Summary of the Risk Management Process
75(2)
Chapter 4 The Role of Advisors in a Project Finance Deal
77(40)
Introduction
77(1)
4.1 The Role of Legal Advisors in Project Finance Deals
78(11)
4.1.1 Legal Advisor, Legal Advisors, and Law Firms: International and Local Legal Counsel
79(2)
4.1.2 Project Financing Development Stages and Impacts on the Role of Legal Advisors
81(1)
4.1.2.1 Forming the Group of Sponsors
81(2)
4.1.2.2 Industrial Development of the Project---The Project Documents
83(2)
4.1.2.3 Project Financing---The Finance Documents
85(1)
4.1.2.4 The Due Diligence Legal Report
86(1)
4.1.2.5 Legal Opinions
87(1)
4.1.2.6 Syndicating the Financing
88(1)
4.1.2.7 The Operating Period: Maintenance of the Project Financing
89(1)
4.2 The Role of the Independent Engineer in Project Finance Deals
89(14)
4.2.1 Initial Due Diligence Reporting
90(1)
4.2.1.1 Documents Required for the Due Diligence Activity
91(1)
4.2.1.2 Accessory Services
92(1)
4.2.1.3 Documents Produced during the Due Diligence Activity Phase
92(1)
4.2.2 Monitoring Realization of the Project (Engineering and Construction)
92(1)
4.2.2.1 Monitoring Construction of the Works
93(2)
4.2.2.2 Issuing Progress Reports
95(1)
4.2.2.3 Validation of Mechanical Completion (Works Completion Certificate)
96(1)
4.2.3 Assistance at the Time of Plant Acceptance
97(1)
4.2.3.1 Validation of the Provisional Acceptance Certificate (PAC)
98(1)
4.2.3.2 Monitoring the Testing Phase
99(2)
4.2.3.3 Validation of the Final Acceptance Certificate (FAC)
101(1)
4.2.4 Monitoring Operations Management
102(1)
4.3 The Role of Insurance Advisors and Insurance Companies in Project Finance Deals
103(14)
4.3.1 Rationale for Using Insurance in Project Finance Deals
104(1)
4.3.2 When Should Insurance Products Be Used?
105(1)
4.3.3 Areas Where the Insurance Advisor Is Involved
106(1)
4.3.3.1 Preliminary Insurance Report Phase
106(1)
4.3.3.2 Final Insurance Report Phase---Construction Phase
106(1)
4.3.3.3 Final Insurance Report Phase---Operations Phase
107(1)
4.3.3.4 The Most Problematic Areas
107(1)
4.3.4 Types of Conventional and Financial Insurance Products Available for Project Finance Deals
108(1)
4.3.4.1 Insurance Coverage during the Construction Phase
109(2)
4.3.4.2 Insurance Coverage during the Operations Phase
111(1)
4.3.4.3 Bonding
111(1)
4.3.5 Integrated Insurance Solutions---Structure and Content
112(1)
4.3.6 Classification of Insurance Underwriters
113(4)
Chapter 5 Valuing the Project and Project Cash Flow Analysis
117(50)
Introduction
117(1)
5.1 Analysis of Operating Cash Flows and Their Behavior in Different Project Life Cycle Phases
118(18)
5.1.1 Inputs for Calculating Cash Flows
121(1)
5.1.1.1 The Timing of the Investment
121(2)
5.1.1.2 Initial Investment Cost
123(2)
5.1.1.3 VAT---Value-Added Tax
125(1)
5.1.1.4 Public Grants
126(3)
5.1.1.5 Analysis of the Sales Contract, the Supply Contract, and Operating Expenses
129(2)
5.1.1.6 Trends in Working Capital
131(4)
5.1.1.7 Taxes
135(1)
5.1.1.8 Macroeconomic Variables
135(1)
5.2 Defining the Optimal Capital Structure for the Deal
136(16)
5.2.1 Equity
138(1)
5.2.2 Senior Debt
139(3)
5.2.3 VAT Facility
142(1)
5.2.4 Stand-by Facility
143(1)
5.2.5 Identifying Sustainable Debt/Equity Mixes for Sponsors and Lenders
144(1)
5.2.5.1 Optimal Capital Structure for Project Sponsors
144(3)
5.2.5.2 Optimal Capital Stracture for Lenders
147(5)
5.3 Cover Ratios
152(8)
5.3.1 What Cover Ratios Can Tell Us and What They Cannot
154(1)
5.3.1.1 Debt Service Cover Ratio (DSCR)
154(2)
5.3.1.2 Loan Life Cover Ratio (LLCR)
156(3)
5.3.2 Cover Ratios as an Application of the Certainty Equivalents Method
159(1)
5.4 Sensitivity Analysis and Scenario Analysis
160(7)
5.4.1 Which Variables Should Be Tested in Sensitivity Analysis?
162(5)
Chapter 6 Financing the Deal
167(100)
Introduction
167(1)
6.1 Advisory and Arranging Activities for Project Finance Funding
167(13)
6.1.1 Advisory Services
169(4)
6.1.2 Arranging Services
173(1)
6.1.3 Integration of Advisory and Arranging Services
174(6)
6.2 Other Roles in Syndicated Loans
180(3)
6.2.1 Single-stage Syndication, Two-stage Syndication, and Club Deals
181(2)
6.3 Fee Structure
183(5)
6.3.1 Fees for Advisory Services
183(1)
6.3.2 Fees for Arranging Services
184(1)
6.3.3 Fees to Participants and the Agent Bank
184(2)
6.3.4 Example of Fee Calculation
186(2)
6.4 International Financial Institutions and Multilateral Banks
188(16)
6.4.1 Multilateral Organizations
190(1)
6.4.1.1 World Bank Group
191(6)
6.4.2 Regional Development Banks
197(1)
6.4.2.1 European Investment Bank (EIB)
198(1)
6.4.2.2 AfDB (African Development Bank)
199(2)
6.4.2.3 IDB (Islamic Development Bank)
201(1)
6.4.2.4 ADB (Asian Development Bank)
202(1)
6.4.2.5 European Bank for Reconstruction and Development (EBRD)
203(1)
6.4.2.6 Inter-American Development Bank (IADB)
204(1)
6.5 Bilateral Agencies: Developmental Agencies and Export Credit Agencies (ECAs)
204(8)
6.5.1 Developmental Agencies
204(2)
6.5.2 Export Credit Agencies (ECAs)
206(1)
6.5.2.1 Financing Activity
207(1)
6.5.2.2 Insurance Activity
208(4)
6.6 Other Financial Intermediaries Involved in Project Finance
212(5)
6.7 Funding Options' Equity
217(2)
6.7.1 Timing of the Equity Contribution and Stand-by Equity and Equity Acceleration
217(2)
6.7.2 Can Shares in an SPV Be Listed on a Stock Exchange?
219(1)
6.8 Funding Options: Mezzanine Financing and Subordinated Debt
219(10)
6.9 Funding Options: Senior Debt
229(13)
6.9.1 The Base Facility
229(1)
6.9.2 Working Capital Facility
229(1)
6.9.3 Stand-by Facility
230(1)
6.9.4 VAT Facility
230(1)
6.9.5 Loan Remuneration
230(1)
6.9.6 Loan Currency
231(1)
6.9.7 Repayment Options
231(7)
6.9.8 Refinancing Loans Already Granted to the SPV
238(1)
6.9.8.1 Soft Refinancing (Waiver)
238(1)
6.9.8.2 Hard Refinancing
239(3)
6.10 Project Leasing
242(4)
6.10.1 Valuing the Convenience of a Project Leasing
243(2)
6.10.2 The Tax Effect
245(1)
6.11 Project Bonds
246(21)
6.11.1 Investors in Project Bonds
248(1)
6.11.2 Various Categories of Project Bonds
249(1)
6.11.2.1 Nationality of the Issuer in Terms of Issue Currency for Securities and Placement Market
249(1)
6.11.2.2 Target Investors
250(1)
6.11.2.3 Capital and Interest Payment Guarantees
251(1)
6.11.2.4 Subordination Clauses
252(1)
6.11.2.5 Interest Calculation Method
252(1)
6.11.2.6 Capital Repayment Method
252(1)
6.11.3 Municipal Bonds
253(1)
6.11.4 When Should Project Bonds Be Used?
254(1)
6.11.4.1 Investor Target
255(1)
6.11.4.2 Tenor of Financing
255(1)
6.11.4.3 Preservation of the Sponsors' Financial Flexibility
255(1)
6.11.4.4 Inflation-Linked Bonds
256(1)
6.11.4.5 Structure for Utilization and Repayment of Funding
256(1)
6.11.4.6 Credit Policies and Market Sentiment
256(1)
6.11.4.7 Fixing the Financing Terms and Conditions
257(1)
6.11.4.8 Confidentiality
257(1)
6.11.4.9 Covenants and Monitoring Management of the Project
257(1)
6.11.4.10 Renegotiation of Contractual Conditions and Refinancing
258(1)
6.11.5 Procedure for Issuing Project Bonds
258(1)
6.11.5.1 Rating Agencies
259(3)
6.11.5.2 Bond Paying Agent and Trustee
262(1)
6.11.5.3 Choice of the Project Bond Bookrunner
263(1)
6.11.5.4 Setting Up the Syndicate: Managers and Selling Group
263(2)
6.11.5.5 The Subscription Agreement
265(1)
6.11.5.6 The Final Bond Prospectus
266(1)
Chapter 7 Legal Aspects of Project Finance
267(54)
Introduction
267(1)
7.1 The Project Company
268(4)
7.1.1 Reasons for Incorporating the Project in a Project Company
269(1)
7.1.1.1 Defensive/Protective Reasons
269(1)
7.1.1.2 Positive Reasons
269(1)
7.1.2 The Project Company as a Joint Venture: Another Reason to Develop a Project in an SPV
270(1)
7.1.3 The Project Company and Groups of Companies
270(1)
7.1.4 Corporate Documentation: Articles of Incorporation
271(1)
7.1.5 Outsourcing the Corporate Functions of the Project Company: How the Company/Project Is Actually Run
271(1)
7.2 The Contract Structure
272(47)
7.2.1 Before the Financing: The Due Diligence Report and the Term Sheet
273(1)
7.2.1.1 Due Diligence Report
273(1)
7.2.1.2 The Term Sheet
274(2)
7.2.2 Classification of Project Documents
276(1)
7.2.3 The Credit Agreement
277(1)
7.2.3.1 Overview
277(1)
7.2.3.2 Interpretation
278(1)
7.2.3.3 The Credit Facilities
278(1)
7.2.3.4 Conditions Precedent: Availability of Drawdowns
279(1)
7.2.3.5 Interest on Drawdowns
280(2)
7.2.3.6 Repayment of the Loans: Cancelling the Facility
282(1)
7.2.3.7 Credit Agreement Costs
283(1)
7.2.3.8 Information Flow from Borrowers to Lenders: Financial Ratios
284(1)
7.2.3.9 Distributions
285(1)
7.2.3.10 Representations
286(2)
7.2.3.11 The Project Company's Covenants
288(1)
7.2.3.11.1 Positive Covenants
288(1)
7.2.3.11.2 Negative Covenants
289(1)
7.2.3.12 Events of Default and Their Consequences: The Financial Crisis of the Transaction
290(3)
7.2.3.13 Role of the Agent
293(1)
7.2.3.14 The Account Bank: Brief Comments on the Account Structure and the Monitoring of Payments
294(3)
7.2.3.15 Assignment of the Credit Agreement: Assignment after Syndication
297(1)
7.2.3.16 Reserved Discretions
297(1)
7.2.4 Security Documents: Security Interests and What They Do
298(1)
7.2.4.1 Introduction to the System of Security in Project Finance
298(3)
7.2.4.2 Common Provisions in the Security Documents
301(1)
7.2.4.3 Pledge on Project Company Shares
301(1)
7.2.4.4 Security on the Project Company's Receivables
302(1)
7.2.4.5 Security on the Project Company's Bank Accounts
303(1)
7.2.4.6 Mortgage on the Project's Property
303(1)
7.2.4.7 Security on Other Project Company Assets
304(1)
7.2.4.8 Direct Agreements
304(1)
7.2.4.9 Enforcing Security Interest and Lenders' Step-in Rights
305(2)
7.2.5 Other Finance Documents
307(1)
7.2.5.1 Equity Contribution Agreement
307(1)
7.2.5.2 Intercreditor Agreement
308(1)
7.2.5.3 Hedging Agreements
309(1)
7.2.6 Project Agreements
310(1)
7.2.6.1 Introduction
310(1)
7.2.6.2 Construction Contract
311(4)
7.2.6.3 Operations and Maintenance (O&M) Agreement
315(1)
7.2.6.4 Offtake Agreements
316(1)
7.2.6.5 Host-Country Agreements
317(1)
7.2.6.6 Other Project Agreements
318(1)
7.3 Refinancing Project Finance Deals
319(2)
Chapter 8 Credit Risk in Project Finance Transactions
321(50)
Introduction
321(5)
8.1 The Basel Committee's Position on Structured Finance Transactions (Specialized Lending)
326(3)
8.1.1 Classes of Transactions Included in Specialized Lending
328(1)
8.2 Rating Criteria for Specialized Lending and Their Application to Project Finance
329(2)
8.2.1 Financial Strength
329(1)
8.2.2 Political and Legal Environment
329(1)
8.2.3 Transaction Characteristics
330(1)
8.2.4 Strength of Sponsors
330(1)
8.2.5 Mitigants and Security Package
330(1)
8.2.6 Summary of Grading Criteria
331(1)
8.3 Rating Grade Slotting Criteria of the Basel Committee and Rating Agency Practices
331(2)
8.4 The Basel Accord and the Treatment of Credit Risk for Project Finance Loans: Is Project Finance More Risky Than Corporate Loans?
333(3)
8.5 Empirical Studies on Project Finance Defaults and Recovery Rates
336(11)
8.5.1 International Finance Corporation Study
336(2)
8.5.2 The International Consortium of ABN AMRO, Citibank, Deutsche Bank, and Societe Generate
338(2)
8.5.3 Recent Developments in the Empirical Analysis of Project Finance Default and Recovery Rates
340(1)
8.5.3.1 Moody's (October 2010)
341(5)
8.5.3.2 Standard and Poor's (August 2007 and October 2010)
346(1)
8.6 Introduction to the Concepts of Expected Loss, Unexpected Loss, and Value at Risk
347(6)
8.7 Denning Default for Project Finance Deals
353(2)
8.8 Modeling the Project Cash Flows
355(9)
8.8.1 Defining a Risk Assessment Model
355(1)
8.8.2 Identifying Project Variables and Key Drivers
355(1)
8.8.3 Input Variables: Estimation and Data Collection
356(8)
8.8.4 Estimating Project Cash Flow and Valuing Results
364(1)
8.9 Estimating Value at Risk through Simulations
364(3)
8.10 Defining Project Value in the Event of Default
367(4)
8.10.1 Deterministic versus Stochastic LGD Estimates
367(1)
8.10.2 LGD Drivers: The Value of Underlying Assets versus Defaulted Project Cash Flows
368(1)
8.10.3 Restructuring versus Default
368(3)
CASE STUDY 1 Cogeneration 1
371(6)
1.1 The Situation
371(1)
1.2 The Production Process
371(2)
1.3 The Sponsors of the Deal
373(1)
1.4 The Agreements Underpinning the Deal
373(3)
1.4.1 Cogeneration 1 Construction Agreement
373(1)
1.4.2 Deasphalting Plant Construction Agreement
374(1)
1.4.3 Operation and Maintenance Agreement
375(1)
1.4.4 Energy Sale/Power Purchase Agreement
375(1)
1.4.5 Steam Purchase Agreement
375(1)
1.4.6 Feedstock Supply Agreement
375(1)
1.4.7 Oxygen Supply Agreement
376(1)
1.5 The Financial Structure
376(1)
1.6 Final: In Arrigoni's Office
376(1)
CASE STUDY 2 Italy Water System
377(10)
Introduction
377(1)
2.1 The Business Plan of the Project
377(1)
2.2 Assumptions
377(3)
2.2.1 Timing
378(1)
2.2.2 Inflation Index
378(1)
2.2.3 Depreciation
378(1)
2.2.4 Interests and Financial Costs
378(1)
2.2.5 Interest on Positive Cash Balances
379(1)
2.2.6 Value-Added Tax (VAT)
379(1)
2.2.7 Taxes
379(1)
2.2.7.1 IRES (Corporate Income Tax)
379(1)
2.2.7.2 IRAP (Regional Tax on Productive Activities)
379(1)
2.2.8 Working Capital
379(1)
2.2.9 Debt Service Reserve Account
380(1)
2.3 Capital Expenditure
380(1)
2.4 Financial Requirement and Sources of Financing
380(3)
2.4.1 Financial Sources
380(1)
2.4.1.1 Debt Facility
381(1)
2.4.1.2 VAT Revolving Facility
382(1)
2.4.1.3 Guarantee Facility
382(1)
2.4.1.4 Equity
383(1)
2.4.1.5 Public Grants
383(1)
2.4.1.6 Cash Flow During Construction
383(1)
2.5 Operational Period
383(2)
2.5.1 Operation of the Existing Water System
383(1)
2.5.2 Operation of the New Water Supply and Treatment Systems
384(1)
2.5.3 Operation of the Two Hydroelectric Plants
384(1)
2.6 Economic and Financial Ratios
385(2)
CASE STUDY 3 Quezon Power Ltd. Co.
387(8)
3.1 The Project
387(7)
3.1.1 Project Sponsors, Ownership Structure, and Basic Terms of Financing
387(3)
3.1.2 The Contractual Structure of Quezon Power Project
390(1)
3.1.2.1 Power Purchase Agreement (PPA)
390(2)
3.1.2.2 Leases
392(1)
3.1.2.3 Transmission Line Agreement
392(1)
3.1.2.4 Engineering, Procurement Contract (EPC), and Construction Management
393(1)
3.1.2.5 Management Service
393(1)
3.1.2.6 Operation and Maintenance (O&M)
393(1)
3.1.2.7 Coal Supply Agreement
393(1)
3.1.2.8 Wheeling Agreement
394(1)
3.2 The Problem
394(1)
CASE STUDY 4 Milan Metro Line 5
395(14)
4.1 Background of the Deal
395(1)
4.2 Description of the Works
396(2)
4.3 Project Sponsors
398(2)
4.3.1 Astaldi S.p.A (Astaldi)
398(1)
4.3.2 Torno Internazionale S.p.A (Torno)
399(1)
4.3.3 AnsaldoBreda S.p.A (AnsaldoBreda)
399(1)
4.3.4 Ansaldo Trasporti-Sistemi Ferroviari S.p.A (Ansaldo)
399(1)
4.3.5 Alstom Ferroviaria S.p.A (Alstom)
399(1)
4.3.6 Azienda Trasporti Milanesi S.p.A (ATM)
400(1)
4.4 The DBOT Concession Contract and Supplementary Contract (Variante Garibaldi)
400(4)
4.4.1 Purpose and Duration
400(1)
4.4.2 Concession Holder's Grants and Fees
400(1)
4.4.3 Revision of the Concession
401(1)
4.4.4 Penalties
402(1)
4.4.5 Contract Termination
403(1)
4.5 Construction Contract and Operations & Maintenance Contract
404(2)
4.5.1 Construction Contract
404(1)
4.5.2 Operations & Maintenance Contract
405(1)
4.6 Financial Structure
406(3)
Appendix 1 The Structure and Functioning of the Simulation Model
409(24)
Introduction
409(1)
A1 Breakdown of the Financial Model
409(24)
A1.1 Assmpt. (Assumption) Sheet
410(2)
A1.2 Sponsor_Cap Sheet (Capex Analysis)
412(1)
A1.3 Sensitivities Sheet
413(1)
A1.4 Capex Sheet
414(1)
A1.5 Life Cycle Costs Sheet
415(1)
A1.6 VAT Sheet
416(1)
A1.7 Depreciation Sheet
417(1)
A1.8 Grant Sheet
418(1)
A1.9 Energy_Rev Sheet
419(1)
A1.1O Water.Rev Sheet
420(1)
A1.11 Opex Sheet
421(1)
A1.12 P&L (Profit & Loss) Sheet and SP (Balance Sheets)
422(1)
A1.13 IRES (Italian Corporate Income Tax) and Tax Sheets
422(3)
A1.14 Work.Cap Sheet
425(1)
A1.15 Guarantee_Fac Sheet
425(1)
A1.16 Debt Sheet
425(4)
A1.17 Equity Sheet
429(1)
A1.18 Cash Flow Sheet
430(1)
A1.19 IRR (Internal Return Rate) Sheet
431(1)
A1.20 Summary Sheet
432(1)
Glossary and Abbreviations 433(12)
References 445(8)
Index 453
Stefano Gatti is the Antin Infrastructure Partners Chair Professor of Infrastructure Finance and Professor of Practice in Finance. He is the Director of the Full Time MBA and former Director of the International Teachers Programme at SDA Bocconi School of Management. His main area of research is corporate finance and investment banking. He has published in these areas including publications in the Journal of Money, credit and banking, Financial Management, the Journal of Applied Corporate Finance and the European Journal of Operational Research. Professor Gatti has published a variety of texts on banking and finance areas and has acted as a consultant to several financial and non-financial institutions and for the Italian Ministry of the Economy, the Financial Stability Board, The InterAmerican Development Bank, the Asian Development Bank and the OECD/Group of G20. He is financial advisor of the Pension Fund of Health care professions, member of the compliance risk committee of Deutsche Bank and member of the Board of Directors and board of auditors of Italian industrial and financial corporations.