Management Engineering

GENERAL OBJECTIVES The aim of the course is to introduce Project Finance as a tool for the development, financing and construction of infrastructures, both in public and private sectors. In particular, the course, through the analysis of the different players involved and their respective roles, the description of the main risks in the various phases of a project and the possible mitigations, as well as the several financial sources that can be accessed to support an initiative (equity, financial debt, public resources) will provide students with the tools necessary to understand the main drivers underlying the structuring of a Project Finance transaction. Finally, all the several aspects of a Project Finance transaction (technical, economic, financial, legal and organizational) will be assessed, focusing on how they should be properly weighted and addressed to identify the most suitable financial structure to support a Project Finance initiative, with the aim of ensuring its sustainability in compliance with the "bankability" criteria. During the course, business cases will be discussed and exercises will be carried out in a Windows Excel environment, aimed at developing a Project Finance financial model with which to evaluate the economic/financial sustainability and the bankability of an investment. The course may be integrated with testimonials provided by leading national and international professionals and operators in the sector. SPECIFIC OBJECTIVES KNOWLEDGE AND UNDERSTANDING. The course aims to provide students with a general overview of Project Finance, in order to understand the main actors involved and the relevant roles played, the sectors where Project finance can be used and the characteristics/requirements that a project must possess in order to be classified as a Project Finance initiative. The prerogative of the course is also to provide students with the quantitative tools necessary to evaluate the economic/financial sustainability of an initiative, with particular reference to economic/financial and bankability indicators. APPLICATIVE SKILLS. At the end of the course the student will be able to evaluate whether a project has the features to be structured using the Project Finance technique; the student will also be able to set up business plans in a Windows Excel environment with which to evaluate an investment and define the most suitable financial structure to support it, in compliance with the profitability/bankability criteria. JUDGMENT AUTONOMY. The course will enable students to judge the feasibility and financial sustainability of a Project Finance transaction, through the identification of the right mix of financial sources (equity/debt), with which to satisfy the bankability criteria underlying a Project Finance deal. COMMUNICATION SKILLS. At the end of the course the student will be able to understand and use the main technical and financial terms used when structuring a Project Finance deal and expose the key features and requirements in using this financial technique. He will also be able to summarize the main KPIs of a transaction to demonstrate its sustainability and bankability. LEARNING ABILITY. The student will develop independent study skills and understanding and critical evaluation of the variables underlying the structuring of a deal in Project Finance.