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Risk Management in Context of Project Financing  of Infrastructure Project Prof. GLENN P. JENKINS DEPARTMENT OF ECONOMICS EASTERN MEDITERRANEAN UNIVERSITY  NORTH CYPRUS
[object Object],[object Object],[object Object],PROJECT  FINANCE
Origins and Development of Project Finance ,[object Object],[object Object],[object Object],[object Object]
Development of Project Finance ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Private Public Partnerships in Infrastructure ,[object Object],[object Object],[object Object],[object Object],[object Object]
Main Characteristics of Suitable Investments for Projects Financing ,[object Object],[object Object],[object Object],[object Object]
Main Characteristics of Project Finance (Summary) ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Basic Elements of a Project Financing Loan funds Debt repayment Equity funds Returns to investors Cash deficiency agreement and other forms of credit support Equity investors Lenders Suppliers Purchasers Raw materials Supply contract(s) Purchase contract(s) Output Assets comprising the project
Prerequisites for Project Financing ,[object Object],[object Object],[object Object]
It’s All About Risk! The key to project financing is the reallocation of any risk away from the lenders to the project.
Definition of Project Completion ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Management and Alleviation of Risks Principle Categories of Risk:  Pre-Completion   and  Post-Completion ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Management and Alleviation of Risks ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
B. Post-Completion Risks ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],B. Post-Completion Risks
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Need for Contracts ,[object Object],[object Object],[object Object],[object Object],[object Object]

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Project finance emu

  • 1. Risk Management in Context of Project Financing of Infrastructure Project Prof. GLENN P. JENKINS DEPARTMENT OF ECONOMICS EASTERN MEDITERRANEAN UNIVERSITY NORTH CYPRUS
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9. The Basic Elements of a Project Financing Loan funds Debt repayment Equity funds Returns to investors Cash deficiency agreement and other forms of credit support Equity investors Lenders Suppliers Purchasers Raw materials Supply contract(s) Purchase contract(s) Output Assets comprising the project
  • 10.
  • 11. It’s All About Risk! The key to project financing is the reallocation of any risk away from the lenders to the project.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.

Notas do Editor

  1. Lending to Bill Gates, general electric vs lending to a project by these entities. Meltdown in SE Asia should lead to more PF 5. Output purchase agreement (s)--case of cogeneration for example. Electricty and steam both under contract.
  2. First two types are typically covered by project supplier through performance bond or guarantee. Mechanical completion is usually a month, sometimes a quarter. Third one is tricky, no real standard definition.