First, we’ll look at financing generally to see what aspects are most important for financing to succeed. Then we’ll look at project financing, a specialized form of financing, that is designed to fund (technical and infrastructure) projects.
Because of the way in which project finance is structured, where money flows are restricted to the project (= ring fencing and limited recourse financing), careful management of the project risks becomes crucial for the success of the financing. In this module, we’ll focus on the system that has been developed to stabilize project cash flows and reduce the financial impact of risks.
By this module, we’ll have built up a good understanding of the most important financial and risk management aspects in project financing. We’ll look at the standardized legal structure that has been developed to achieve all the project finance objectives.
In this module you will work with the financial model in Microsoft Excel. You will learn how to create a model for your own project and apply it to convince lenders and investors to finance it.