Principles of Project Finance

1st edition 2002 - for 2nd edition see here

“Principles of Project Finance” is a practical guide offering a systematic approach to project finance, which is used throughout the world as a method of financing energy, process plant, infrastructure (including public-private partnerships) and natural resources projects. Project finance is used for financing projects which are dependent on cash flows, derived from contractual relationships, for repayment. By their very nature, such projects rely on integrated contractual arrangements for successful completion and operation. Because project finance dictates every aspect of a project’s development and contracts, all participants need to understand how this type of financing works and how the financial structure affects their rôles. The book therefore follows the typical project-development process from procurement to financial close, to demonstrate the principles which underlie the structuring of long-term debt finance for major projects. It focuses on concepts and techniques without being too academic or getting lost in the detail of case studies, and is intended both as an introduction to project finance and a general working handbook for those involved in any aspect of a project.

“This is an authoritative work written by a distinguished practitioner. I have no doubt it will quickly become a key text for those in both public or private sectors whose work involves Project Finance.”

—Michael Gerrard, Head of Public Private Partnerships, Partnerships UK plc

“This book provides a comprehensive treatment of project finance accessible to those less familiar with the subject matter yet detailed enough to serve as a valuable reference for the experienced manager. The book covers a wide array of topics, from legal issues to valuation methods, and even hedging financial risk with financial derivatives. Given the increasing importance of project finance in Asia and the Pacific Rim, Principles of Project Finance will be an invaluable reference for academics and managers alike in this region.”

—Nobuya Takezawa, International Christian University, Tokyo, Japan

-oOo-

And recommended here by Paul Boateng, former Chief Secretary to H.M. Treasury, U.K.

Key Features

• A comprehensive and authoritative guide to the theory and practice of project finance

• An international scope, covering projects in the developed and developing worlds.

• The book describes and explains:

  • Sources of project finance

  • Typical commercial contracts (such as those for construction of the project, and sale of its product or provision of services through Build-Operate-Transfer [BOT] and Public-Private Partnership [PPP/PFI] contracts) and their impact on the project finance structure

  • Project finance risk assessment from the points of view of lenders, investors, and other project parties

  • Structuring the project finance debt

  • The key issues in negotiating a project finance debt facility.

• Extensive glossary and cross-referencing. (used as a source for Harvard Business School’s “Glossary of Project Finance Terms and Acronyms”)

• No prior knowledge of project finance or financing techniques is assumed.