E-Book, Englisch, 560 Seiten
ISBN: 978-0-12-415755-2
Verlag: Elsevier Science & Techn.
Format: EPUB
Kopierschutz: 6 - ePub Watermark
E.R. Yescombe has over 30 years' experience in various forms of structured finance, including project finance, leasing, export credits, real estate and asset finance. A former banker and head of project finance in London for a major international bank, he is now an independent consultant on project finance and public-private partnerships (PPPs), advising investors on financing for power, infrastructure and PPP projects, as well as public-sector entities on PPP policy issues, project procurement and contracting.
Autoren/Hrsg.
Weitere Infos & Material
1;Front Cover;1
2;Principles of Project Finance;4
3;Copyright Page;5
4;Contents;6
5;List of Tables;12
6;List of Figures;14
7;1 Introduction;16
8;2 What is Project Finance?;20
8.1;§2.1 Introduction;20
8.2;§2.2 Definition and Basic Characteristics;20
8.3;§2.3 Development of Project Finance;24
8.4;§2.4 Elements of a Project-Finance Structure;28
8.5;§2.5 Examples of Project-Finance Structures;29
8.5.1;§2.5.1 Process-Plant projects;29
8.5.2;§2.5.2 Infrastructure Projects;30
8.5.3;§2.5.3 Other Structures;33
8.6;§2.6 Why Use Project Finance?;35
8.6.1;§2.6.1 Why Investors Use Project Finance;36
8.6.2;§2.6.2 The Benefits of Project Finance to Third Parties;40
9;3 Project Development and Management;44
9.1;§3.1 Introduction;44
9.2;§3.2 Sponsors and Other Investors;45
9.2.1;§3.2.1 Passive and Secondary Investors;47
9.2.2;§3.2.2 Public-Sector Shareholders;48
9.3;§3.3 Project Development;48
9.4;§3.4 The Rôle of Advisors;49
9.4.1;§3.4.1 Financial Advisor;50
9.4.2;§3.4.2 Legal Advisor;52
9.4.3;§3.4.3 Other Advisors;53
9.5;§3.5 Joint-Venture Issues;53
9.6;§3.6 The Project Company;55
9.6.1;§3.6.1 Structure;55
9.6.2;§3.6.2 Shareholder Agreement;56
9.6.3;§3.6.3 Management and Operations;57
9.7;§3.7 Public Procurement;59
9.7.1;§3.7.1 Project Management;60
9.7.2;§3.7.2 Advisors;61
9.7.3;§3.7.3 Project Development;62
9.7.4;§3.7.4 Procurement Systems;64
9.7.5;§3.7.5 Pre-Qualification;67
9.7.6;§3.7.6 Request for Proposals;68
9.7.7;§3.7.7 Negotiation;70
9.7.8;§3.7.8 Bid Evaluation;71
9.7.9;§3.7.9 Dealing with Bids;72
9.7.10;§3.7.10 Competitive Bidding for Sub-Contracts;73
9.7.11;§3.7.11 Unsolicited Bids;74
9.7.12;§3.7.12 Relationship with the Lenders;75
9.7.13;§3.7.13 Contract Management;75
10;4 The Project-Finance Markets;76
10.1;§4.1 Introduction;76
10.2;§4.2 Commercial Banks;77
10.2.1;§4.2.1 Areas of Activity;77
10.2.2;§4.2.2 Banks in the Market;79
10.3;§4.3 Bonds;81
10.3.1;§4.3.1 The U.S. Bond Market;82
10.3.2;§4.3.2 Wrapped Bonds;85
10.3.3;§4.3.3 The International Bond Market;86
10.4;§4.4 Other Non-Bank Lenders;89
10.5;§4.5 Other Sources of Private-Sector Debt;89
10.5.1;§4.5.1 Mezzanine Debt;89
10.5.2;§4.5.2 Lease Finance;90
10.5.3;§4.5.3 Vendor Finance;91
10.5.4;§4.5.4 Islamic Finance;92
11;5 Working with Lenders;94
11.1;§5.1 Introduction;94
11.2;§5.2 Commercial Banks;94
11.2.1;§5.2.1 Organizational Structure;94
11.2.2;§5.2.2 Project Finance and Structured Finance;96
11.2.3;§5.2.3 Lead Arrangers;97
11.2.4;§5.2.4 Letters of Intent;99
11.2.5;§5.2.5 Bank Rôles;99
11.2.6;§5.2.6 Financial Model;100
11.2.7;§5.2.7 Term Sheet, Underwriting, and Documentation;101
11.2.8;§5.2.8 Information Memorandum and Syndication;103
11.2.9;§5.2.9 Loan Agency;104
11.2.10;§5.2.10 Collateralized Loan Obligations (CLOs);105
11.3;§5.3 Bonds;106
11.3.1;§5.3.1 The Investment Bank and the Credit Rating Agencies;106
11.3.2;§5.3.2 Paying Agent, Trustees and Controlling Creditor;108
11.4;§5.4 Bank Loans Versus Bonds;108
11.5;§5.5 Lenders’ Due-Diligence and External Advisors;110
11.5.1;§5.5.1 Due Diligence;110
11.5.2;§5.5.2 Legal Advisors;111
11.5.3;§5.5.3 Lenders’ Engineer;111
11.5.4;§5.5.4 Insurance Advisor;112
11.5.5;§5.5.5 Model Auditor;112
11.5.6;§5.5.6 Other Advisors;112
11.5.7;§5.5.7 Pre-appointment of Lenders’ Advisors;113
11.5.8;§5.5.8 Use of Advisors’ Time;113
11.6;§5.6 Lenders and the Public-Procurement Process;114
11.6.1;§5.6.1 Bank Debt;114
11.6.2;§5.6.2 Bonds;115
12;6 Types of Project Agreement;118
12.1;§6.1 Introduction;118
12.2;§6.2 BOT, BTO et al.;119
12.3;§6.3 Offtake Contract;121
12.3.1;§6.3.1 Types of Offtake Contract;121
12.3.2;§6.3.2 PPA Structure;124
12.3.3;§6.3.3 Construction Phase;124
12.3.4;§6.3.4 Operation of the Plant;125
12.3.5;§6.3.5 Tariff;125
12.3.6;§6.3.6 Penalties;128
12.4;§6.4 Availability-based Contract;130
12.4.1;§6.4.1 Service Fee;131
12.4.2;§6.4.2 Output Specification;131
12.4.3;§6.4.3 Availability;132
12.4.4;§6.4.4 Performance;134
12.4.5;§6.4.5 Benchmarking and Market-Testing Building-Services Costs;136
12.4.6;§6.4.6 Shadow Tolls;137
12.5;§6.5 Concession Agreement;138
12.5.1;§6.5.1 User Charges;138
12.5.2;§6.5.2 Competition;139
12.5.3;§6.5.3 Revenue Sharing;139
12.5.4;§6.5.4 User Issues;139
12.5.5;§6.5.5 Other Terms;140
12.6;§6.6 Other ‘PPP-like’ Contracts;140
13;7 Common Aspects of Project Agreements;144
13.1;§7.1 Introduction;144
13.2;§7.2 Term;145
13.2.1;§7.2.1 Useful Life of the Project;145
13.2.2;§7.2.2 Affordability;145
13.2.3;§7.2.3 Term of the Debt;145
13.2.4;§7.2.4 Equity Return;146
13.2.5;§7.2.5 Residual Value;146
13.2.6;§7.2.6 Flexibility;146
13.2.7;§7.2.7 ‘Whole-life’ Benefits;147
13.2.8;§7.2.8 Tax Efficiency;147
13.2.9;§7.2.9 Variable Term;147
13.3;§7.3 Payment Mechanism;147
13.3.1;§7.3.1 Payment on Project Completion;147
13.3.2;§7.3.2 Level Payments;148
13.3.3;§7.3.3 Inflation Indexation;148
13.3.4;§7.3.4 Third-Party Revenue;149
13.4;§7.4 Contract Monitoring by the Offtaker/Contracting Authority;150
13.4.1;§7.4.1 Design and Construction;150
13.4.2;§7.4.2 Operation;151
13.4.3;§7.4.3 Sub-Contracts;152
13.4.4;§7.4.4 Financing;152
13.5;§7.5 Performance Bonding and other Guarantees;152
13.6;§7.6 Compensation Events;153
13.6.1;§7.6.1 Breach of Obligation;154
13.6.2;§7.6.2 Delays in Construction;154
13.6.3;§7.6.3 Contract Variations;154
13.6.4;§7.6.4 Changes in Law;156
13.6.5;§7.6.5 Financial Equilibrium;156
13.7;§7.7 Excusing Causes;158
13.8;§7.8 Relief Events;158
13.9;§7.9 Step-in by the Offtaker/Contracting Authority;159
13.10;§7.10 Termination of the Project Agreement;160
13.10.1;§7.10.1 Early Termination: Default by the Project Company;160
13.10.2;§7.10.2 Early Termination: Default by the Offtaker/Contracting Authority;166
13.10.3;§7.10.3 Optional Termination by the Offtaker/Contracting Authority;169
13.10.4;§7.10.4 Early Termination: Force Majeure;169
13.10.5;§7.10.5 Early Termination: Corruption or Fraud;171
13.10.6;§7.10.6 Tax Implications of a Termination Sum Payment;171
13.10.7;§7.10.7 Final Maturity of a Reverting Asset-based Project Agreement;171
13.10.8;§7.10.8 Early Termination of a Non-Reverting Asset-based Project Agreement;173
13.10.9;§7.10.9 Final Maturity of a Non-Reverting Asset-based Contract;174
13.11;§7.11 Change of Ownership;175
13.12;§7.12 Dispute Resolution;176
14;8 Sub-Contracts and Other Related Agreements;178
14.1;§8.1 Introduction;178
14.2;§8.2 Construction Contract;179
14.2.1;§8.2.1 Scope of Contract;181
14.2.2;§8.2.2 Commencement of the Works;181
14.2.3;§8.2.3 Contract Price, Payments, and Variations;182
14.2.4;§8.2.4 Construction Supervision;183
14.2.5;§8.2.5 Owner’s Risks;183
14.2.6;§8.2.6 Relief Events;184
14.2.7;§8.2.7 Project Completion;184
14.2.8;§8.2.8 Liquidated Damages and Termination;185
14.2.9;§8.2.9 Security;187
14.2.10;§8.2.10 Suspension and Termination by the Construction Contractor;188
14.2.11;§8.2.11 Dispute Resolution;189
14.3;§8.3 O&M/Maintenance Contract(s);189
14.3.1;§8.3.1 Scope of Contract;189
14.3.2;§8.3.2 Services;189
14.3.3;§8.3.3 Fee Basis;190
14.3.4;§8.3.4 Incentives and Penalties;191
14.3.5;§8.3.5 Major Maintenance Contract;191
14.4;§8.4 Building-Services Contract;191
14.5;§8.5 Fuel or Other Input-Supply Contract;192
14.5.1;§8.5.1 Supply Basis;193
14.5.2;§8.5.2 Physical Delivery Risks;195
14.5.3;§8.5.3 Pricing Basis;195
14.5.4;§8.5.4 Security;196
14.5.5;§8.5.5 Relief Events and Change in Law;196
14.5.6;§8.5.6 Default and Termination;197
14.6;§8.6 Insurance;197
14.6.1;§8.6.1 Construction-Phase Insurances;198
14.6.2;§8.6.2 Operating-Phase Insurances;201
14.6.3;§8.6.3 Deductibles;201
14.6.4;§8.6.4 Supplier’s or Buyer’s Extensions;202
14.6.5;§8.6.5 Lender Requirements;202
14.6.6;§8.6.6 Reinsurance;204
14.6.7;§8.6.7 Control of Litigation;204
14.6.8;§8.6.8 Insurance Premium/Uninsurable Risk;205
14.6.9;§8.6.9 Linear or Multi-site Projects;205
14.6.10;§8.6.10 Portfolio Insurance/Self-Insurance;205
14.7;§8.7 Site Lease and other Usage Rights;205
14.8;§8.8 Permits and Other Rights;206
14.8.1;§8.8.1 Project Permits;206
14.8.2;§8.8.2 Rights of Way and Easements;207
14.8.3;§8.8.3 Shared Facilities;207
14.8.4;§8.8.4 Investment and Financing Permits;207
14.9;§8.9 Amendments to and Replacement of Sub-Contracts;208
14.10;§8.10 Parent-Company Guarantees;208
14.11;§8.11 Direct Agreements;209
15;9 Commercial Risks;212
15.1;§9.1 Introduction;212
15.2;§9.2 Risk Evaluation and Allocation;213
15.3;§9.3 Analysis of Commercial Risks;215
15.4;§9.4 Commercial Viability;216
15.5;§9.5 Construction Risks;218
15.5.1;§9.5.1 Site Acquisition and Access;219
15.5.2;§9.5.2 Site Condition;219
15.5.3;§9.5.3 Permits;220
15.5.4;§9.5.4 The Construction Contractor;221
15.5.5;§9.5.5 Construction Contract-Related Cost Overruns;224
15.5.6;§9.5.6 Other Construction-Phase Costs;227
15.5.7;§9.5.7 Revenue During Construction;228
15.5.8;§9.5.8 Delay in Project Completion;229
15.5.9;§9.5.9 Third-Party Risks;230
15.5.10;§9.5.10 Inadequate Performance on Project Completion;232
15.5.11;§9.5.11 The Construction Contractor’s Security;233
15.5.12;§9.5.12 Projects without a Fixed-Price, Date-Certain, Turnkey Construction Contract;233
15.6;§9.6 Revenue Risks;234
15.6.1;§9.6.1 Offtake and Similar Contracts;235
15.6.2;§9.6.2 Projects without Price or Volume Risk Mitigation;238
15.6.3;§9.6.3 Concession Agreements and Privatized Infrastructure;241
15.6.4;§9.6.4 Availability-based Contracts;244
15.7;§9.7 Operating Risks;245
15.7.1;§9.7.1 Process-Plant Projects—Technology Risk;246
15.7.2;§9.7.2 Process-Plant Projects—Project Operation;247
15.7.3;§9.7.3 Process-Plant Projects—Degradation;247
15.7.4;§9.7.4 Concession Agreements and Availability-based Contracts—Availability and Performance;248
15.7.5;§9.7.5 Maintenance and Lifecycle Costs;248
15.7.6;§9.7.6 Utility Costs;250
15.7.7;§9.7.7 Other Operating Costs;251
15.8;§9.8 Input-Supply Risks;251
15.8.1;§9.8.1 Input-Supply Contracts;252
15.8.2;§9.8.2 When is an Input-Supply Contract Not Needed?;255
15.8.3;§9.8.3 Water and Wind;255
15.8.4;§9.8.4 Mineral Reserves;255
15.8.5;§9.8.5 Other Utilities;256
15.9;§9.9 Uninsured Risks and Related issues;256
15.9.1;§9.9.1 Force Majeure and Insurance;257
15.9.2;§9.9.2 Insurance Costs;257
15.9.3;§9.9.3 Unavailability of Insurance;258
15.10;§9.10 Environmental Risks;259
15.10.1;§9.10.1 Environmental Impact Assessment;260
15.10.2;§9.10.2 The Equator Principles;260
15.10.3;§9.10.3 Pre-Existing Site Contamination;262
15.10.4;§9.10.4 Waste Disposal;263
15.10.5;§9.10.5 Change in Law;263
15.11;§9.11 Residual-Value Risk;263
15.12;§9.12 Contract Mismatch;263
15.13;§9.13 Recourse to the Sponsors;265
15.14;§9.14 Risks for an Offtaker/Contracting Authority;268
15.15;§9.15 Why Do Projects Fail?;268
15.16;§9.16 Loss on Default;270
16;10 Macro-Economic Risks;272
16.1;§10.1 Introduction;272
16.2;§10.2 The Time Value of Money;273
16.2.1;§10.2.1 Discounted Cash Flow;273
16.2.2;§10.2.2 Internal Rate of Return;275
16.2.3;§10.2.3 Problems in Using DCF and IRR Calculations;276
16.3;§10.3 Interest-Rate Risks;280
16.3.1;§10.3.1 Interest-Rate Swaps;282
16.3.2;§10.3.2 Interest-Rate Caps and other Instruments;289
16.3.3;§10.3.3 Scale and Timing of Interest-Rate Hedging;290
16.3.4;§10.3.4 Fixed-Rate Loans or Bonds;290
16.3.5;§10.3.5 Interest-Rate Hedging before Financial Close;292
16.3.6;§10.3.6 Should Interest-Rate Risk be the Project Company’s Problem?;294
16.4;§10.4 Inflation;294
16.4.1;§10.4.1 Inflation Indexation of Contract Payments;295
16.4.2;§10.4.2 ‘Over-Indexation’;298
16.4.3;§10.4.3 Inflation-Indexed Financing;299
16.5;§10.5 Foreign-Exchange Risks;301
16.5.1;§10.5.1 Managing Foreign-Exchange Risks;302
16.5.2;§10.5.2 Exchange-Rate Hedging;304
16.5.3;§10.5.3 Local-Currency Debt;304
16.5.4;§10.5.4 Liquidity Support;305
16.5.5;§10.5.5 Catastrophic Devaluation;305
16.5.6;§10.5.6 Finance in More than One Currency;306
16.5.7;§10.5.7 Conversion of Local Currency Revenues;307
16.5.8;§10.5.8 Fixing of Security in Local Currency;308
16.6;§10.6 Refinancing Risk;308
17;11 Regulatory and Political Risks;310
17.1;§11.1 Introduction;310
17.2;§11.2 Projects and Politics;311
17.3;§11.3 Change in Law;312
17.3.1;§11.3.1 Change in Law Risk;313
17.3.2;§11.3.2 Categories of Change in Law;313
17.4;§11.4 Investment Risks;315
17.4.1;§11.4.1 Currency Convertibility and Transfer;316
17.4.2;§11.4.2 Expropriation;319
17.4.3;§11.4.3 War and Civil Disturbance;319
17.5;§11.5 Wider Political Risks;320
17.5.1;§11.5.1 Contract Repudiation/Legal Process;320
17.5.2;§11.5.2 Creeping Expropriation;322
17.6;§11.6 ‘Sub-Sovereign’ Risk;323
17.7;§11.7 Government Support Agreement;324
17.8;§11.8 Political-Risk Insurance and Guarantees;326
17.8.1;§11.8.1 Private-Sector Insurance;326
18;12 Financial Structuring;328
18.1;§12.1 Introduction;328
18.2;§12.2 Investors’ Analysis and Equity Structure;329
18.2.1;§12.2.1 Equity IRR;329
18.2.2;§12.2.2 Blended Equity IRR;330
18.2.3;§12.2.3 Timing of Equity Investment;331
18.2.4;§12.2.4 Other Equity-Return Measurements;333
18.2.5;§12.2.5 Bringing in New Investors at Financial Close;336
18.3;§12.3 Debt Cover Ratios;337
18.3.1;§12.3.1 Annual Debt-Service Cover Ratio;337
18.3.2;§12.3.2 Loan-Life Cover Ratio;338
18.3.3;§12.3.3 Average ADSCR and LLCR;339
18.3.4;§12.3.4 Project-Life Cover Ratio;339
18.3.5;§12.3.5 Reserve-Cover Ratio;340
18.3.6;§12.3.6 Calculating Cover Ratios;340
18.3.7;§12.3.7 Minimum Cover Ratios and Debt Amount;341
18.4;§12.4 Debt:Equity Ratio;342
18.4.1;§12.4.1 Calculation of Debt:Equity Ratio;343
18.4.2;§12.4.2 Contingency Financing;343
18.4.3;§12.4.3 100% Contingent Equity;343
18.4.4;§12.4.4 Projects without Equity;344
18.5;§12.5 Debt Service Profile;344
18.5.1;§12.5.1 Term of Financing;345
18.5.2;§12.5.2 Average Life;346
18.5.3;§12.5.3 Repayment Schedule;347
18.5.4;§12.5.4 Flexible Repayment;351
18.6;§12.6 Interest Rate and Fees;352
18.6.1;§12.6.1 Interest Rate;353
18.6.2;§12.6.2 Arranging and Underwriting Fees;353
18.6.3;§12.6.3 Commitment Fees;354
18.6.4;§12.6.4 Agency Fees;354
18.7;§12.7 Additional Costs;355
18.7.1;§12.7.1 Withholding Tax on Interest Payments;355
18.7.2;§12.7.2 Mandatory Costs;355
18.7.3;§12.7.3 Market Disruption;356
18.8;§12.8 Optimizing the Financial Structure;356
19;13 The Financial Model;360
19.1;§13.1 Introduction;360
19.2;§13.2 Functions of the Financial Model;361
19.3;§13.3 Model Inputs;362
19.4;§13.4 Macro-Economic Assumptions;363
19.4.1;§13.4.1 Inflation;363
19.4.2;§13.4.2 Commodity Prices;364
19.4.3;§13.4.3 Interest Rates;364
19.4.4;§13.4.4 Exchange Rates and Currency of the Model;365
19.4.5;§13.4.5 Economic Growth;366
19.5;§13.5 Project Costs and Financing;366
19.5.1;§13.5.1 Construction-Phase Costs;366
19.5.2;§13.5.2 Construction-Phase Financing;368
19.6;§13.6 Operating Revenues and Costs;369
19.7;§13.7 Accounting and Taxation Issues;369
19.7.1;§13.7.1 Capitalization and Depreciation of Project Costs;370
19.7.2;§13.7.2 The Dividend Trap;372
19.7.3;§13.7.3 Negative Equity;374
19.7.4;§13.7.4 Timing of Tax Payments;375
19.7.5;§13.7.5 Value-Added Tax;375
19.7.6;§13.7.6 Withholding Tax;375
19.7.7;§13.7.7 Exchange Rates and Tax;375
19.7.8;§13.7.8 Inflation and Tax;377
19.8;§13.8 Model Outputs;377
19.9;§13.9 Sensitivity Analysis;378
19.10;§13.10 The Banking Case, Base Case and Financial Close;379
19.11;§13.11 Using the Model after Financial Close;379
20;14 Project-Finance Loan Documentation;382
20.1;§14.1 Introduction;382
20.2;§14.2 Lenders’ Term Sheet;383
20.3;§14.3 Construction Phase—Drawdown of Debt;383
20.3.1;§14.3.1 Availability Period;384
20.3.2;§14.3.2 Drawdown Procedure;384
20.3.3;§14.3.3 Debt Accretion;385
20.4;§14.4 Operating Phase—Control of Cash Flow;386
20.4.1;§14.4.1 Project Accounts;386
20.4.2;§14.4.2 The Cash-Flow Cascade;390
20.4.3;§14.4.3 Distributions to investors;391
20.4.4;§14.4.4 Cash Sweep;392
20.4.5;§14.4.5 Cash clawback;394
20.5;§14.5 Reporting Requirements;394
20.5.1;§14.5.1 Construction Phase;394
20.5.2;§14.5.2 Operating Phase;394
20.6;§14.6 Debt Cancellation and Prepayment;395
20.6.1;§14.6.1 Commitment Reduction;395
20.6.2;§14.6.2 Partial Prepayment;396
20.7;§14.7 Lenders’ Security;397
20.7.1;§14.7.1 Mortgages and contract assignments;398
20.7.2;§14.7.2 Security over project company’s shares;400
20.8;§14.8 Conditions Precedent;401
20.8.1;§14.8.1 Conditions Precedent to Financial Close;401
20.8.2;§14.8.2 Conditions Precedent to Loan Drawdowns;403
20.8.3;§14.8.3 MAC Clause;404
20.9;§14.9 Representations and Warranties;404
20.10;§14.10 Covenants;406
20.10.1;§14.10.1 Positive Covenants;406
20.10.2;§14.10.2 Negative Covenants;408
20.11;§14.11 Permissions, Waivers and Amendments;409
20.12;§14.12 Events of Default;410
20.13;§14.13 Lenders’ Decision-Making Process;413
20.14;§14.14 Intercreditor Issues;415
20.14.1;§14.14.1 Interest-Rate Swap Providers;417
20.14.2;§14.14.2 Fixed-Rate Lenders;417
20.14.3;§14.14.3 Lenders with Different Security;418
20.14.4;§14.14.4 Lessors;418
20.14.5;§14.14.5 Subordinated or Mezzanine Lenders;418
20.14.6;§14.14.6 Defaulting lender;420
20.15;§14.15 Governing Law and Jurisdiction;420
20.16;§14.16 Debt Refinancing;420
20.16.1;§14.16.1 Basis for Refinancing;421
20.16.2;§14.16.2 Debt Refinancing: The ‘Windfall’ Issue;424
20.16.3;§14.16.3 Calculating the Refinancing Gain;425
20.16.4;§14.16.4 What Apparent Refinancings Should be Excluded from Gain-Sharing Provisions?;429
20.16.5;§14.16.5 Are refinancing gain-sharing provisions enforceable?;432
20.16.6;§14.16.6 Does it Matter?;432
20.17;§14.17 Secondary Equity Sale;433
20.17.1;§14.17.1 Secondary Equity Sale—The ‘Windfall’ Issue;435
21;15 Public-Sector Financial Support;438
21.1;§15.1 Introduction;438
21.2;§15.2 Indirect Public-Sector Financial Support;439
21.3;§15.3 Direct Public-Sector Financial Support;439
21.4;§15.4 Mezzanine Debt;442
21.4.1;§15.4.1 U.S. State Infrastructure Banks;442
21.4.2;§15.4.2 ‘TIFIA’ Program;443
21.4.3;§15.4.3 EIB Project Bond Initiative;444
21.5;§15.5 Standby Financing;444
21.6;§15.6 Refinancing after Project Completion;444
21.7;§15.7 Gap Financing;445
21.8;§15.8 Policy Banks;446
21.9;§15.9 Credit Guarantee Finance;447
21.10;§15.10 Capital Grant;448
21.11;§15.11 Viability-Gap Funding;450
21.12;§15.12 Part-Construction of the Project;451
21.13;§15.13 Complementary Investment;451
21.14;§15.14 Full Debt Guarantee;451
21.15;§15.15 First-Loss Debt Guarantee;452
21.16;§15.16 Pari-Passu Debt Guarantee;452
21.17;§15.17 Debt Underpinning;453
21.18;§15.18 Minimum Revenue Guarantee (‘MRG’);453
21.19;§15.19 Tariff Subsidy;455
21.20;§15.20 Public-Sector Project Company;456
21.21;§15.21 Guarantee Funds;456
22;16 Export-Credit Agencies and Development-Finance Institutions;458
22.1;§16.1 Introduction;458
22.2;§16.2 Export Credit Agencies;459
22.2.1;§16.2.1 ECA Support for Projects;460
22.2.2;§16.2.2 Berne Union;461
22.2.3;§16.2.3 The OECD Consensus;462
22.2.4;§16.2.4 Assumption of Risks and Scope of Cover;464
22.2.5;§16.2.5 Cash Collateralization;466
22.2.6;§16.2.6 Benefit of ECA Support;467
22.3;§16.3 Political-Risk Insurance for Investors;467
22.4;§16.4 ECAs and Bilateral DFIs;468
22.4.1;§16.4.1 Japan (NEXI/JBIC);470
22.4.2;§16.4.2 Korea (K-sure/KEXIM/KDB);471
22.4.3;§16.4.3 China (SINOSURE/China Eximbank/CDB;472
22.4.4;§16.4.4 United States (U.S. Exim/OPIC);473
22.4.5;§16.4.5 Germany (Hermes/KfW/DEG);475
22.4.6;§16.4.6 Italy (SACE/Simest);475
22.4.7;§16.4.7 France (COFACE/DREE/Proparco);476
22.4.8;§16.4.8 Denmark (EKF);477
22.5;§16.5 Multilateral Development-Finance Institutions;477
22.5.1;§16.5.1 The World Bank;479
22.5.2;§16.5.2 International Finance Corporation (‘IFC’);482
22.5.3;§16.5.3 International Development Association (‘IDA’);484
22.5.4;§16.5.4 Multilateral Investment Guarantee Agency (‘MIGA’);484
22.5.5;§16.5.5 Asian Development Bank;486
22.5.6;§16.5.6 African Development Bank;487
22.5.7;§16.5.7 European Bank for Reconstruction and Development;488
22.5.8;§16.5.8 European Investment Bank;488
22.5.9;§16.5.9 Inter-American Development Bank;491
22.6;Annex: U.S. Exim ‘Project Criteria and Application Information Requirements’;492
22.6.1;I General Project;492
22.6.1.1;Information Required;492
22.6.2;II Participants;494
22.6.2.1;Information Required;494
22.6.3;III Technical;494
22.6.3.1;Information Required;494
22.6.4;IV Host Country Legal/Regulatory Framework and Government Role;495
22.6.4.1;Information Required;495
23;17 Recent Market Developments and Prospects for Project Finance;496
23.1;§17.1 Introduction;496
23.2;§17.2 The Effect of the 2008 Financial Crisis;497
23.3;§17.3 The ‘Basel Process’;498
23.4;§17.4 Non-Bank Lenders;500
23.4.1;§17.4.1 Institutional Lenders;500
23.4.2;§17.4.2 Debt Funds;501
23.4.3;§17.4.3 Public-Sector Pension Funds;502
23.4.4;§17.4.4 Solvency II;502
23.5;§17.5 Improving Project-Finance Credit Risk;502
23.5.1;§17.5.1 Separate Construction Risk;503
23.5.2;§17.5.2 Mezzanine Debt;504
23.5.3;§17.5.3 Standby Finance;504
23.5.4;§17.5.4 Blended Tenors;505
23.5.5;§17.5.5 Increased Equity;505
23.6;§17.6 New Models;506
23.6.1;§17.6.1 Regulated Asset Base Finance;506
23.6.2;§17.6.2 Output-Based Aid;508
23.6.3;§17.6.3 Social-Impact Bonds;509
23.6.4;§17.6.4 Tax Increment Finance;510
23.7;§17.7 The Future of Project Finance;512
24;Glossary and Abbreviations;514
25;Index;556
