Contents
Chapter 1 - Introduction |
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Chapter 2 - What Is Project Finance? |
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§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 |
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§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 |
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§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 |
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§5.1 Introduction | |
§5.2 Commercial Banks | |
§5.3 Bonds | |
§5.4 Bank Loans Versus Bonds | |
§5.5 Lenders’ Due-Diligence Process and External Advisors | |
§5.6 Lenders and the Public-Procurement Process | |
Chapter 6 - Types of Project Agreement |
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§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 |
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§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 |
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§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 |
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§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 Force Majeure | |
§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 | |
Chapter 10 - Macro-Economic Risks |
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§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 |
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§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 |
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§12.1 Introduction | |
§12.2 Investors’ Analysis and Equity Structure | |
§12.3 Debt Cover Ratios | |
§12.4 Debt:Equity Ratio | |
§12.5 Debt Service | |
§12.6 Interest Rate and Fees | |
§12.7 Additional Costs | |
§12.8 Optimizing the Financial Structure | |
Chapter 13 - The Financial Model |
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§13.1 Introduction | |
§13.2 Model Inputs | |
§13.3 Macro-economic Assumptions | |
§13.4 Project Costs and Financing | |
§13.5 Operating Revenues and Costs | |
§13.6 Accounting and Taxation Issues | |
§13.7 Model Outputs | |
§13.8 Sensitivity Analysis | |
§13.9 The Base Case & Financial Close | |
§13.10 Using the Model after Financial Close | |
Chapter 14 Project-Finance Loan Documentation |
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§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 Reduction 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 |
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§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 | |
§15.19 Tariff Subsidy | |
§15.20 Public-Sector Project Company | |
§15.21 Guarantee Funds | |
Chapter 16 - Export-Credit Agencies and Development-Finance Institutions |
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§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 | |
Chapter 17 - Recent Market Developments & Prospects for Project Finance |
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§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 |
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