Project Finance

This course aims to present the principles of Project Finance and its extension to innovative project-related financial structures, primarily Public Private Partnerships (PPPs).

Project Finance is characterized by very strong links to industries and utilities (e.g. energy, oil and gas, infrastructures, water and sanitation), and ranks among key products for international investors and banks.

Progressively, Project Finance has gained access to international public and private financial markets, through sophisticated structures based upon risk assessment and risk sharing. The course will therefore focus upon the various and numerous risks (technological, industrial, economic, financial and legal) to be considered and proactively managed in such structures.

Project Finance often involves both public and private interests. Due to increasing constraints on public budgets and investments, many countries have decided to promote Public Private Partnerships in order to foster their economic and social development. In this respect, the course will propose a presentation of the role of International Financial Institutions in developing countries.

The course will debate the difficult long term challenges international projects have to face in the context of somewhat instable geopolitical issues, sustainable development and the reinforcement of financial and banking regulations.

Course Content

  1. The mechanisms of Project Finance
  2. Political and economic risks
  3. The PF toolkit (examples): Modeling, Securitization
  4. Project Finance in Developing Countries
  5. Sustainable finance in international projects
  6. PPPs and Economic and Social Development
  7. The role of International Financial Institutions.