Project Finance in Energy Business
Cost and project financing discipline includes understanding the rationale for project financing, how to prepare the cost and financial plan, assess the risks, design the financing mix, and raise the funds. In addition, one must understand the cogent analyses of why some project financing plans have succeeded while others have failed. A knowledge-base is required regarding the design of contractual arrangements to support project financing; issues for the host government legislative provisions, public/private financing structures; credit requirements of lenders, and how to determine the project's borrowing capacity; how to prepare cash flow projections and use them to measure expected rates of return, cost accounting considerations, and analytical techniques to validate the project's feasibility.
The objective of the course is directed at the following learning outcome and competences:
developing a solid understanding in the techniques of cost and project finance and the key issues in its practice.
acquiring knowledge in in covering important legal documentation issues and in providing students with the opportunity to undertake project evaluation.
students will gain knowledge how lenders evaluate credit ratings in energy projects and understand major bottlenecks that can jeopardize financial closings and developing skills to tackle cultural barriers between project developers and lenders.
Opetusmuoto / Opetusmenetelmät
Lectures, Teamwork and Project work.
1: The student is able, with guidance, to utilise the methods learnt during the study unit.
3: The student is able to utilise the methods learnt during the study unit independently.
5: The student is able to utilise the methods learnt during the study unit independently and is able apply the learnt knowledge in new contexts.
Active participation, team works, exams and project work.