Infrastructure may be considered as the backbone of prosperity and a prerequisite of development. The global financing needs for infrastructure are large, roughly estimated at US$ 100 trillion between 2015 and 2030. An increasing and significant proportion of infrastructures assets are privately owned or operated. Global institutional investors and major funds managers are keen to expand investment strategies that approach infrastructure as a class asset. The course provides a succinct but comprehensive overview of the political economy of infrastructure project finance with the following four modules: (1) Political Economy of Infrastructure; (2) Project Finance ; (3) Structuring and Financing of Large Scale Infrastructure Investments ;(4) Project Financing in Developing Countries and emerging Markets .
The objective of the course is to provide an understanding of infrastructure investment as a major contribution to the creation of wealth and prosperity while at the same time broadening the understanding of global Finance through overviews and case studies of project finance, emerging markets and international capital ventures as well as Public Private Partnerships. The course will discuss social, environment and climate impact of large infrastructure investments. It will also provide an overview of Islamic Finance.
The course is intended to students who will be involved at any stage of infrastructure investment process in Corporate or Government sponsored agencies, who will be transaction advisors (investment or commercial bankers, regional or global multilateral bankers, consulting firms or investors) responsible for making money through debt/equity balancing or fund management.
The syllabus includes cases, technical notes, and articles. Presentation of the 4 modules, case studies and reference material will be in English. Discussion, interactions will be in English and French.
Evaluation will be based on participation and a paper on a topic related to global infrastructure investment which will be written in groups of students.
Module 1: Political Economy of Infrastructure
Definition and characteristics of Infrastructure
Demand for infrastructure
Urbanism: development amplifier
Environment and social risks and impact
Climate Change: challenges and opportunities
Module 2: Project Finance
History and Basics
PPP and Project Finance
Structure of Project Finance
Financial modelling and Project Evaluation
Module 3: Structuring and Financing of large scale infrastructure projects
Global corporate investors: rationale and incentives
Regional and Global Multilateral Banks: World Bank Group, Asian Development Bank , Inter American Development Bank , African Development Bank , Asian Infrastructure Investment Bank ( AIIB ) European Development Bank , New Development Bank .
National institutional operators
Challenges and Opportunities of Islamic Finance
Module 4: Project Financing in Developing Countries and Emerging Markets
Managing Risks and volatility
Opportunities and challenges of investments in conflict affected countries
John D. Finnerty , Project Financing , Third Edition .Wiley Finance Series, 2013
Barbara Weber , Hans Wilhem Alfen, Infrastructure as an Asset Class , Wiley Finance, 2010
Benjamin C. Esty , Modern Project Finance , A Case book , Wiley Finance , 2006
Airbus XX : Developing the World’s Largest Commercial Jet, HBS Case Studies
Nghe An Tate and Lyle Sugar Company Vietnam , HBS Case studies
Chad Cameroon Petroleum and Pipeline Project, HBS Case studies
Lao PDR Nam Theum II
Texas High Speed Train Corporation
Poland’s A2 Motorway
Hong Kong Disneyland