Project Finance in Theory and Practice : Designing, Structuring, and Financing Private and Public Projects

* ''Professor Gatti offers the reader an original viewpoint combining rigorous theory with constant reference to market best practices.'' -- **Roberto Albisetti**,IFC World Bank Group andUniversity of Genoa ''Gatti's book provides comprehensive and coherent coverage of project finance, including transaction structures, the institutional environment, and financial analysis. Its presentation of practical examples and cases makes it a great teaching tool.'' -- **Raymond Hill**, Emory University ''A good read as well as an excellent reference book, Project Finance in Theory and Practice is very valuable as it is successfully pitched to be useful to readers of all levels of education and experience and explains the roles and objectives of the different parties very clearly. The book can be used both for training and as a guide to best practices.'' -- **Alexander S. Moczarski**, President and Chief Executive Officer - Guy Carpenter - Marsh & McLennan Group Project finance is a long-established technique for non recourse financing which is extremely relevant today, with more and more infrastructure and other large projects being developed. Professor Gatti and the other contributors use practical concepts and very relevant case studies to clearly explain Project Financing to its readers. It is a must read and a reference book for professionals and practitioners. -- **Jean Pierre Mustier**, UniCredit Deputy General Manager and Head of CIB Division ''Professor Gatti offers the reader an original viewpoint combining rigorous theory with constant reference to market best practices.'' -- Roberto Albisetti ,IFC World Bank Group andUniversity of Genoa ''Gatti's book provides comprehensive and coherent coverage of project finance, including transaction structures, the institutional environment, and financial analysis. Its presentation of practical examples and cases makes it a great teaching tool.'' -- Raymond Hill , Emory University ''A good read as well as an excellent reference book, Project Finance in Theory and Practice is very valuable as it is successfully pitched to be useful to readers of all levels of education and experience and explains the roles and objectives of the different parties very clearly. The book can be used both for training and as a guide to best practices.'' -- Alexander S. Moczarski , President and Chief Executive Officer - Guy Carpenter - Marsh & McLennan Group Project finance is a long-established technique for non recourse financing which is extremely relevant today, with more and more infrastructure and other large projects being developed. Professor Gatti and the other contributors use practical concepts and very relevant case studies to clearly explain Project Financing to its readers. It is a must read and a reference book for professionals and practitioners. -- Jean Pierre Mustier , UniCredit Deputy General Manager and Head of CIB Division Content: Front Matter , Page ii Copyright , Page iv Preface to the Second Edition , Pages xv-xvii Preface to the First Edition , Pages xix-xxi Scannapieco's Foreword , Pages xxiii-xxiv Foreword , Pages xxv-xxvii About the Author and the Contributors , Pages xxix-xxx Chapter 1 - Introduction to the Theory and Practice of Project Finance , Pages 1-25 Chapter 2 - The Market for Project Finance: Applications and Sectors , Pages 27-42 Chapter 3 - Project Characteristics, Risk Analysis, and Risk Management , Pages 43-75 Chapter 4 - The Role of Advisors in a Project Finance Deal , Pages 77-115 Chapter 5 - Valuing the Project and Project Cash Flow Analysis , Pages 117-166 Chapter 6 - Financing the Deal , Pages 167-266 Chapter 7 - Legal Aspects of Project Finance , Pages 267-320 Chapter 8 - Credit Risk in Project Finance Transactions , Pages 321-369 Case Study 1 - Cogeneration 1 , Pages 371-376 Case Study 2 - Italy Water System , Pages 377-385 Case Study 3 - Quezon Power Ltd. Co. , Pages 387-394 Case Study 4 - Milan Metro Line 5 , Pages 395-407 Appendix - The Structure and Functioning of the Simulation Model , Pages 409-432 Glossary and Abbreviations , Pages 433-444 References , Pages 445-451 Index , Pages 453-464

This book presents comprehensive coverage of project finance in Europe and North America. The Second Edition features two new case studies, all new pedagogical supplements including end-of-chapter questions and answers, and insights into the recent market downturn. The author provides a complete description of the ways a project finance deal can be organized—from industrial, legal, and financial standpoints—and the alternatives available for funding it. After reviewing recent advances in project finance theory, he provides illustrations and case studies. At key points Gatti brings in other project finance experts who share their specialized knowledge on the legal issues and the role of advisors in project finance deals.

*Forword by William Megginson, Professor and Rainbolt Chair in Finance, Price College of Business, The University of Oklahoma

*Comprehensive coverage of theory and practice of project finance as it is practiced today in Europe and North America

*Website contains interactive spreadsheets so that readers can input data and run and compare various scenarios, including up to the minute treatment of the cutting-edge areas of PPPs and the new problems raised by Basel II related to credit risk measurement This book presents comprehensive coverage of project finance in Europe and North America. The Second Edition features two new case studies, all new pedagogical supplements including end-of-chapter questions and answers, and insights into the recent market downturn. The author provides a complete description of the ways a project finance deal can be organized - from industrial, legal, and financial standpoints - and the alternatives available for funding it. After reviewing recent advances in project finance theory, he provides illustrations and case studies. At key points Gatti brings in other project finance experts who share their specialized knowledge on the legal issues and the role of advisors in project finance deals. Forword by William Megginson, Professor and Rainbolt Chair in Finance, Price College of Business, The University of Oklahoma Comprehensive coverage of theory and practice of project finance as it is practiced today in Europe and North America Website contains interactive spreadsheets so that readers can input data and run and compare various scenarios, including up to the minute treatment of the cutting-edge areas of PPPs and the new problems raised by Basel II related to credit risk measurement This book presents comprehensive coverage of project finance in Europe and North America. The Second Edition features two new case studies, all new pedagogical supplements including end-of-chapter questions and answers, and insights into the recent market downturn. The author provides a complete description of the ways a project finance deal can be organized-from industrial, legal, and financial standpoints-and the alternatives available for funding it. After reviewing recent advances in project finance theory, he provides illustrations and case studies. At key points Gatti brings in other project finance experts who share their specialized knowledge on the legal issues and the role of advisors in project finance deals. Foreword by William Megginson, Professor and Rainbolt Chair in Finance, Price College of Business, The University of Oklahoma. Comprehensive coverage of theory and practice of project finance as it is practiced today in Europe and North America. Website contains interactive spreadsheets so that readers can input data and run and compare various scenarios, including up to the minute treatment of the cutting-edge areas of PPPs and the new problems raised by Basel II related to credit risk measurement Preface to the second edition / Stefano Gatti Preface to the original first edition / Stefano Gatti Foreword / William L. Megginson from 1st edition Foreword / Dario Scannapieco An introduction to the theory and practice of project finance The market for project finance : applications and the sectors Project characteristics, risk analysis, and risk allocation The role of advisors in a project finance deal Valuing the project and project cash flow analysis Financing the deal Legal aspects of project finance Credit risk in project finance transactions Appendix: The structure and functioning of the simulation model Glossary List of references.