Description

The Second Edition of this best-selling introduction for practitioners uses new material and updates to describe the changing environment for project finance.  Integrating recent developments in credit markets with revised insights into making project finance deals, the second edition offers a balanced view of project financing by combining legal, contractual, scheduling, and other subjects. Its emphasis on concepts and techniques makes it critical for those who want to succeed in financing large projects.  With extensive cross-references and a comprehensive glossary, the Second Edition presents anew a guide to the principles and practical issues that can commonly cause difficulties in commercial and financial negotiations.

Key Features

  • Provides a basic introduction to project finance and its relationship with other financing techniques
  • Describes and explains: sources of project finance; typical commercial contracts (e.g., for construction of the project and sale of its product or services) and their effects on project-finance structures; project-finance risk assessment from the points of view of lenders, investors, and other project parties; how lenders and investors evaluate the risks and returns on a project; the rôle of the public sector in public-private partnerships and other privately-financed infrastructure projects; how all these issues are dealt with in the financing agreements

Readership

Private sector investors and lenders who intend to make project finance deals. Upper-division undergraduates and graduate students worldwide working in subjects studying the financing of large-scale single projects

Table of Contents

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/Co

Details

No. of pages:
560
Language:
English
Copyright:
© 2017
Published:
Imprint:
Academic Press
Print ISBN:
9780123910585
Electronic ISBN:
9780124157552

Reviews

"This book provides a concise, accurate, and updated context of project finance. Not only it is a favoured reference for project entrepreneurs, financial controllers and government regulators, but it is also a highly recommended reading for students in business and civil engineering." --Shiguang Ma, University of Wollongong

"Yescombe’s book is the best compendium of project finance concepts I know of. Principles is a detailed 'cook-book' for organizing project financings, comprehensive in its description of risks, contracts, and project participants, including sponsors, capital providers, and public and multinational institutions." --Ray Hill, Emory University

"This book is clear enough for the novice and comprehensive enough for the expert. It covers all areas in project finance and does so precisely. It is a must for anyone looking to get into project finance." --Alfonso Canella, Brandeis University

"E.R. Yescombe’s new edition of Principles of Project Finance is a state-of-the-art, comprehensive overview, with detailed and balanced coverage of the economic, financial, and legal dimensions of project finance. The book is full of relevant case studies and practical advice to make project financing work in the post-financial crisis environment." --John S. Strong, College of William and Mary