Project Finance in Theory and Practice - 3rd Edition - ISBN: 9780128114018, 9780128114025

Project Finance in Theory and Practice

3rd Edition

Designing, Structuring, and Financing Private and Public Projects

Authors: Stefano Gatti
eBook ISBN: 9780128114025
Paperback ISBN: 9780128114018
Imprint: Academic Press
Published Date: 1st June 2018
Page Count: 525
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The framework of Project Finance in Theory and Practice, Third Edition is a set of topics that can be fitted over any project financing task. This matrix includes essential, core material for project finance that simply is not equaled elsewhere. Enlarged by almost 10%, the Third Edition updates market information and offers new insights about Sharia-compliant instruments as well as a comprehensive overview of the current state of the international regulation of banking after the financial crisis. The addition of new case studies and topics related to country risk respond to changes among funding sources. At key points Gatti brings in other project finance experts who share their specialized knowledge on legal issues and the roles of advisors in project finance details. Useful for readers at all levels of education and experience, the Third Edition excels in describing the ways a project finance deal can succeed.

Key Features

  • Expanded by almost 10%, the Third Edition presents 3 new cases, one from outside Europe, indicating a convergence trend between the bank loan market and debt capital markets for bonds
  • Addresses human rights and sustainability issues, in particular the Equator Principles for determining, assessing, and managing environmental and social risk in projects
  • Expands its treatment of guarantee mechanisms that governments are increasingly providing to private developers to attract private capital to infrastructure


Upper-division undergraduates, graduate students, and professionals worldwide working on project finance

Table of Contents

1. An Introduction to the Theory and Practice of Project Finance
2. The Market for Project Finance: Applications and the Sectors
3. Project Characteristics, Risk Analysis, and Risk Allocation
4. The Role of Advisors in a Project Finance Deal
5. Valuing the Project and Project Cash Flow Analysis
6. Financing the Deal
7. Legal Aspects of Project Finance
8. Credit Risk in Project Finance Transactions

Case Studies
1. Cogeneration 1
2. Italy Water System
3. Odebrecht Norbe Drilling VIII/IX
4. Watercraft Capital
5. Viveracqua Hydrobond
6. Quezon Power Ltd. Co.

Appendix: The Structure and Functioning of the Simulation Model Introduction


No. of pages:
© Academic Press 2019
Academic Press
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About the Author

Stefano Gatti

Stefano Gatti

Stefano Gatti is Director of the BS of Economics and Finance at Università Bocconi, and Associate Professor of Financial Markets and Intermediaries. While at Bocconi, he has won numerous awards including Best Teacher Award SDA Bocconi School of Management, in 2004, 2005 and 2006. He also won the Best MBA Case of the Year, SDA Bocconi School of Management from 2004 to 2013. In addition he was the winner of the Award for Excellence in Teaching a.y. 2008-2009, a.y. 2009-2010, a.y. 2010-2011, a.y. 2011-2012.

Professor Gatti has published a variety of texts on banking and finance areas and has acted as a consultant to several financial and non-financial institutions and for the Italian Ministry of the Economy.

He is financial advisor of the Pension Fund of Health care professions and has been member of the Board of Directors of BCC Private Equity SGR and Same Deutz-Fahr.

Affiliations and Expertise

Professor, Bocconi University, Milan, Italy and consultant for banks and manufacturing firms in Italy and a trainer for managers and government members in Russia, Africa and China


"Project finance is a long-established technique for non recourse financing and is extremely relevant today, with more and more infrastructure and other large projects being developed.  Professor Gatti and the other contributors use practical concepts and very relevant case studies to clearly explain project financing to their readers.  This book is a must-read and a reference book valuable to professionals and practitioners." --Jean Pierre Mustier, Chief Executive Officer and General Manager, UniCredit SpA

"Gatti's book provides comprehensive and coherent coverage of project finance, including transaction structures, the institutional environment, and financial analysis. Its presentation of practical examples and cases makes it a great teaching tool." --Ray Hill, Emory University

"The author reaches out effectively to a broad range of readers.  His book is valuable to business and finance practitioners and students, given its original viewpoint of combining rigorous theory with constant references to market best practices." --Roberto Albisetti, IFC (International Finance Corporation) Senior Manager for Mexico and Central America

"A good read as well as an excellent reference book, Project Finance in Theory and Practice is very valuable as it is successfully pitched to be useful to readers of all levels of education and experience and explains the roles and objectives of the different parties very clearly. The book can be used both for training and as a guide to best practices." --Edwin M. Charnaud, Chairman, Global Infrastructure Practice, Marsh Ltd.