Project Financing

JOHN D. FINNERTY, PHD, is Professor of Finance at Fordham University's Graduate School of Business and served as the founding director of the MS in Quantitative Finance Program. He is also Managing Principal of Finnerty Economic Consulting, LLC, which specializes in business valuation, securities valuation, solvency analysis, calculation of damages, and litigation support. Finnerty has testified as an expert in valuation, securities, and other financial matters in federal and state court, and in arbitration and mediation proceedings. His research focuses on corporate finance, including project financing and fixed income securities and derivatives valuation. Finnerty??has published thirteen books, including the first and second editions of Project Financing, and more than one hundred articles and professional papers. He is a former president and director of the Fixed Income Analysts Society, and a former president, director, and chair of the trustees of the Eastern Finance Association. Finnerty is a trustee of the Eastern Finance Association and a Director of the Financial Management Association. He was inducted into the Fixed Income Analysts Society Hall of Fame in 2011.

• Preface xiAcknowledgments xvChapter 1 what is project financing? 1Chapter 2 The Rationale For Project Financing 13Chapter 3 what is special about large projects? 33Chapter 4 who finances large projects? 53Chapter 5 analyzing project viability 71Chapter 6 analysis and financing of renewable energy projects 91Chapter 7 Designing security arrangements 115Chapter 8 Structuring the project 131Chapter 9 Preparing the project financing plan 151Chapter 10 Discounted cash flow analysis 169Chapter 11 Financial modeling and project evaluation 193Chapter 12 Using real-options analysis to evaluate a project 215Chapter 13 Sources of project funds 239Chapter 14 Managing project risks 271Chapter 15 Sharia-compliant project financing 305Chapter 16 Issues for the host government 331Chapter 17 case study: the indiantown cogeneration project 347Chapter 18 case study: the tribasa toll road project 379Chapter 19 case study: the euro disneyland project 399Chapter 20 case study: the eurotunnel project 431Chapter 21 conclusion 457Appendix A comparative terms of selected projects 463Appendix B other examples of project financings 475Appendix C legal investment requirements governing new york life insurance companies 489Notes 495Bibliography 513Websites 521Index 523