Project Finance in Construction: A Structured Guide to Assessment - Softcover

Über die Autorin bzw. den Autor

Anthony Merna is senior partner of Oriel Group Practice, a multidisciplinary research and consultancy practice based in Manchester and a visiting lecturer to Manchester Business School at the University of Manchester. He has been teaching Project Finance for the last 14 years to a number of UK and overseas universities, businesses and government agencies.

Yang Chu is a graduate of the School of Mechanical, Aerospace and Civil Engineering at the University of Manchester and a research consultant with Oriel Group Practice specialising in the areas of project finance and risk modelling. He is currently carrying out risk management research at Manchester Business School.

Faisal Al-Thani is Senior Development Manager, Middle East for Maersk Oil based in Doha and a board member of the Marsh International Risk Council.

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Project finance in construction procurement has spread worldwide from power stations and waste-disposal plants to telecommunication facilities, bridges, tunnels, railway networks, and now also to the building of hospitals and schools.

Despite a financial assessment of PF projects being fundamental to the lender’s decision, there is little understanding of how the use of finance is perceived by individual stakeholders; why and how a financial assessment is performed; who should be involved; where and when it should take place; what data should be used; and how financial assessments should be presented.
The steps outlined in this guide provide a basic understanding for all those involved in structuring or assessing project finance. Secondary contracts involving constructors, operators, finance providers, suppliers and offtakers can be developed and assessed to determine their commercial viability over a project’s life cycle.

Any uncertainty in financial markets prompts sponsors of construction project financings to carefully consider bank liquidity, the higher cost of finance, and general uncertainty for demand. This results in the postponement of projects and the drastic reduction of governments' tax receipts, which in turn affects their ability to finance infrastructure projects.

Project Finance in Construction offers a structured process for determining the commercial viability of large construction projects procured with project finance (PF). It explains how to use economic metrics in the decision-making process and provides a detailed case study showing how stakeholders apply the concept of project finance.

This guide will enable students and academics involved in project finance as well as project managers worldwide to develop their own assessment structures and be confident in their use.

Aus dem Klappentext

Project finance in construction procurement has spread worldwide from power stations and waste-disposal plants to telecommunication facilities, bridges, tunnels, railway networks, and now also to the building of hospitals and schools.

Despite a financial assessment of PF projects being fundamental to the lender’s decision, there is little understanding of how the use of finance is perceived by individual stakeholders; why and how a financial assessment is performed; who should be involved; where and when it should take place; what data should be used; and how financial assessments should be presented.
The steps outlined in this guide provide a basic understanding for all those involved in structuring or assessing project finance.  Secondary contracts involving constructors, operators, finance providers, suppliers and offtakers can be developed and assessed to determine their commercial viability over a project’s life cycle.

Any uncertainty in financial markets prompts sponsors of construction project financings to carefully consider bank liquidity, the higher cost of finance, and general uncertainty for demand. This results in the postponement of projects and the drastic reduction of governments' tax receipts, which in turn affects their ability to finance infrastructure projects.

Project Finance in Construction offers a structured process for determining the commercial viability of large construction projects procured with project finance (PF).  It explains how to use economic metrics in the decision-making process and provides a detailed case study showing how stakeholders apply the concept of project finance.

This guide will enable students and academics involved in project finance as well as project managers worldwide to develop their own assessment structures and be confident in their use.