Financing and Investing in Infrastructure Course Syllabus

Overview: This course provides a comprehensive introduction to financing and investing in infrastructure, focusing on the core principles of project finance. Learners will explore the structure of infrastructure deals, risk assessment, capital budgeting, and financial sustainability. Through real-world case studies and practical frameworks, participants gain insights into how public and private sectors fund large-scale projects. The course spans approximately 8 hours of content, divided into seven modules, and concludes with a final quiz to assess understanding. Ideal for professionals in finance, consulting, or infrastructure development seeking foundational knowledge in structured project financing.

Module 1: Project Finance and the Network of Contracts

Estimated time: 2 hours

• Introduction to project finance as a nexus of contracts
• Role and structure of Special Purpose Vehicles (SPVs)
• Key financial contracts in infrastructure projects
• Industrial agreements underpinning project execution

Module 2: Syndicate

Estimated time: 1 hour

• Formation and roles within banking syndicates
• Syndication strategies and cost structures
• Impact of financial crises on syndicated loan markets

Module 3: Risk Analysis

Estimated time: 1 hour

• Identification of pre-completion and post-completion risks
• Classification of risks in infrastructure projects
• Development of risk matrices
• Strategies for risk allocation and mitigation

Module 4: Capital Budgeting

Estimated time: 1 hour

• Capital budgeting techniques for construction and operational phases
• Analysis of funding sources and reserve accounts
• Application of budgeting principles to real infrastructure scenarios

Module 5: The Financial Sustainability of an Infrastructure Project

Estimated time: 1 hour

• Assessment of project profitability from shareholder and creditor perspectives
• Understanding cover ratios and their financial significance
• Evaluation of financial sustainability metrics

Module 6: How Can Creditors Protect Themselves?

Estimated time: 1 hour

• Overview of security packages in credit agreements
• Loan covenants and borrower monitoring mechanisms
• Methods of loan amortization in project finance
• Use of financial ratios to track performance

Module 7: Additional Videos and Final Quiz

Estimated time: 1 hour

• Case studies on real infrastructure projects
• Comprehensive final assessment

Prerequisites

• Basic understanding of financial principles
• Familiarity with corporate finance concepts
• Interest in infrastructure or project finance careers

What You'll Be Able to Do After

• Understand how debt and equity are structured in infrastructure investments
• Analyze the role and function of Special Purpose Vehicles (SPVs)
• Assess key risks in infrastructure projects and apply mitigation strategies
• Apply capital budgeting skills to large-scale infrastructure ventures
• Evaluate financial sustainability from both investor and creditor viewpoints