List of Tables
List of Figures
Chapter 1. Introduction
Chapter 2. What is Project Finance?
§2.1 Introduction
§2.2 Definition and Basic Characteristics
§2.3 Development of Project Finance
§2.4 Elements of a Project-Finance Structure
§2.5 Examples of Project-Finance Structures
§2.6 Why Use Project Finance?
Chapter 3. Project Development and Management
§3.1 Introduction
§3.2 Sponsors and Other Investors
§3.3 Project Development
§3.4 The Rôle of Advisors
§3.5 Joint-Venture Issues
§3.6 The Project Company
§3.7 Public Procurement
Chapter 4. The Project-Finance Markets
§4.1 Introduction
§4.2 Commercial Banks
§4.3 Bonds
§4.4 Other Non-Bank Lenders
§4.5 Other Sources of Private-Sector Debt
Chapter 5. Working with Lenders
§5.1 Introduction
§5.2 Commercial Banks
§5.3 Bonds
§5.4 Bank Loans Versus Bonds
§5.5 Lenders’ Due-Diligence and External Advisors
§5.6 Lenders and the Public-Procurement Process
Chapter 6. Types of Project Agreement
§6.1 Introduction
§6.2 BOT, BTO et al.
§6.3 Offtake Contract
§6.4 Availability-based Contract
§6.5 Concession Agreement
§6.6 Other ‘PPP-like’ Contracts
Chapter 7. Common Aspects of Project Agreements
§7.1 Introduction
§7.2 Term
§7.3 Payment Mechanism
§7.4 Contract Monitoring by the Offtaker/Contracting Authority
§7.5 Performance Bonding and other Guarantees
§7.6 Compensation Events
§7.7 Excusing Causes
§7.8 Relief Events
§7.9 Step-in by the Offtaker/Contracting Authority
§7.10 Termination of the Project Agreement
§7.11 Change of Ownership
§7.12 Dispute Resolution
Chapter 8. Sub-Contracts and Other Related Agreements
§8.1 Introduction
§8.2 Construction Contract
§8.3 O&M/Maintenance Contract(s)
§8.4 Building-Services Contract
§8.5 Fuel or Other Input-Supply Contract
§8.6 Insurance
§8.7 Site Lease and other Usage Rights
§8.8 Permits and Other Rights
§8.9 Amendments to and Replacement of Sub-Contracts
§8.10 Parent-Company Guarantees
§8.11 Direct Agreements
Chapter 9. Commercial Risks
§9.1 Introduction
§9.2 Risk Evaluation and Allocation
§9.3 Analysis of Commercial Risks
§9.4 Commercial Viability
§9.5 Construction Risks
§9.6 Revenue Risks
§9.7 Operating Risks
§9.8 Input-Supply Risks
§9.9 Uninsured Risks and Related issues
§9.10 Environmental Risks
§9.11 Residual-Value Risk
§9.12 Contract Mismatch
§9.13 Recourse to the Sponsors
§9.14 Risks for an Offtaker/Contracting Authority
§9.15 Why Do Projects Fail?
§9.16 Loss on Default
Chapter 10. Macro-Economic Risks
§10.1 Introduction
§10.2 The Time Value of Money
§10.3 Interest-Rate Risks
§10.4 Inflation
§10.5 Foreign-Exchange Risks
§10.6 Refinancing Risk
Chapter 11. Regulatory and Political Risks
§11.1 Introduction
§11.2 Projects and Politics
§11.3 Change in Law
§11.4 Investment Risks
§11.5 Wider Political Risks
§11.6 ‘Sub-Sovereign’ Risk
§11.7 Government Support Agreement
§11.8 Political-Risk Insurance and Guarantees
Chapter 12. Financial Structuring
§12.1 Introduction
§12.2 Investors’ Analysis and Equity Structure
§12.3 Debt Cover Ratios
§12.4 Debt:Equity Ratio
§12.5 Debt Service Profile
§12.6 Interest Rate and Fees
§12.7 Additional Costs
§12.8 Optimizing the Financial Structure
Chapter 13. The Financial Model
§13.1 Introduction
§13.2 FUNCTIONS OF THE FINANCIAL MODEl
§13.3 Model Inputs
§13.4 Macro-Economic Assumptions
§13.5 Project Costs and Financing
§13.6 Operating Revenues and Costs
§13.7 Accounting and Taxation Issues
§13.8 Model Outputs
§13.9 Sensitivity Analysis
§13.10 The Banking Case, Base Case and Financial Close
§13.11 Using the Model after Financial Close
Chapter 14. Project-Finance Loan Documentation
§14.1 Introduction
§14.2 Lenders’ Term Sheet
§14.3 Construction Phase—Drawdown of Debt
§14.4 Operating Phase—Control of Cash Flow
§14.5 Reporting Requirements
§14.6 Debt Cancellation and Prepayment
§14.7 Lenders’ Security
§14.8 Conditions Precedent
§14.9 Representations and Warranties
§14.10 Covenants
§14.11 Permissions, Waivers and Amendments
§14.12 Events of Default
§14.13 Lenders’ Decision-Making Process
§14.14 Intercreditor Issues
§14.15 Governing Law and Jurisdiction
§14.16 Debt Refinancing
§14.17 Secondary Equity Sale
Chapter 15. Public-Sector Financial Support
§15.1 Introduction
§15.2 Indirect Public-Sector Financial Support
§15.3 Direct Public-Sector Financial Support
§15.4 Mezzanine Debt
§15.5 Standby Financing
§15.6 Refinancing after Project Completion
§15.7 Gap Financing
§15.8 Policy Banks
§15.9 Credit Guarantee Finance
§15.10 Capital Grant
§15.11 Viability-Gap Funding
§15.12 Part-Construction of the Project
§15.13 Complementary Investment
§15.14 Full Debt Guarantee
§15.15 First-Loss Debt Guarantee
§15.16 Pari-Passu Debt Guarantee
§15.17 Debt Underpinning
§15.18 Minimum Revenue Guarantee (‘MRG’)
§15.19 Tariff Subsidy
§15.20 Public-Sector Project Company
§15.21 Guarantee Funds
Chapter 16. Export-Credit Agencies and Development-Finance Institutions
§16.1 Introduction
§16.2 Export Credit Agencies
§16.3 Political-Risk Insurance for Investors
§16.4 ECAs and Bilateral DFIs
§16.5 Multilateral Development-Finance Institutions
Annex: U.S. Exim ‘Project Criteria and Application Information Requirements’
Chapter 17. Recent Market Developments and Prospects for Project Finance
§17.1 Introduction
§17.2 The Effect of the 2008 Financial Crisis
§17.3 The ‘Basel Process’
§17.4 Non-Bank Lenders
§17.5 Improving Project-Finance Credit Risk
§17.6 New Models
§17.7 The Future of Project Finance
Glossary and Abbreviations
Index
