Project Finance in Theory and Practice
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Project Finance in Theory and Practice Designing, Structuring, and Financing Private and Public Projects Stefano Gatti
AMSTERDAM • BOSTON • HEIDELBERG • LONDON NEW YORK • OXFORD • PARIS • SAN DIEGO SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO Academic Press is an imprint of Elsevier
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Abbreviated Contents
Foreword by William L. Megginson Preface Acknowledgments About the Author
xiii xvii xix xxi
Chapter 1
Introduction to the Theory and Practice of Project Finance
1
Chapter 2
The Market for Project Finance: Applications and Sectors
19
Chapter 3
Project Characteristics, Risk Analysis, and Risk Management
31
Chapter 4
The Role of Advisors in a Project Finance Deal
63
Chapter 5
Valuing the Project and Project Cash Flow Analysis
101
Chapter 6
Financing the Deal
147
Chapter 7
Legal Aspects of Project Finance
233
Chapter 8
Credit Risk in Project Finance Transactions and the New Basel Capital Accord
289
v
vi
ABBREVIATED CONTENTS
Case Studies Case Study 1
Cogeneration
323
Case Study 2
Italy Water System
331
Appendix to Case Study 2: Structure and Functioning of the Simulation Model
341
Case Study 3
359
Hong Kong Disneyland Project Loan
Glossary and Abbreviations References Index
379 395 401
Contents
Foreword by William L. Megginson Preface Acknowledgments About the Author Chapter 1
Introduction to the Theory and Practice of Project Finance
Introduction 1.1 What Is Project Finance? 1.2 Why Do Sponsors Use Project Finance? 1.3