Project finance is a fast-growing area of capital investment for major infrastructure and other large projects. Financing such projects as EuroDisney, airports, highways, tunnels, schools, hospitals, and other large projects presents a complex and interesting challenge that the specialty of project finance takes on wholeheartedly, combining financial engineering with legal and contractual expertise to develop various financing options. In this book, Stefano Gatti of Bocconi University describes the theory that underpins this cutting-edge industry, and then provides illustrations and examples from actual practice to illustrate that theory. At key points in the book, 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 L. MegginsonPrefaceAcknowledgmentsAbout the AuthorChapter 1 Introduction to the Theory and Practice of Project FinanceChapter 2 The Market for Project Finance: Applications and the SectorsChapter 3 Project Characteristics, Risk Analysis and Risk ManagementChapter 4 The Role of Advisors in a Project Finance Deal (Stefano Gatti, Massimo Novo, Fabio Landriscina and Mark Pollard)Chapter 5 Valuing the Project and Project Cash Flow Analysis (Stefano Gatti)Chapter 6 Financing the Deal (Stefano Gatti)Chapter 7 Legal Aspects of Project Finance (Massimo Novo)Chapter 8 Credit Risk in Project Finance Transactions and New Basel Capital Accord (Stefano Gatti)Case StudiesCase Study 1 CogenerationCase Study 2 Italy Water System (Stefano Gatti, Daniele Corbino, Alessandro Steffanoni)Appendix to Case Study 2: Structure and Functioning of the Simulation Model Case Study 3: Hong Kong Disneyland Project Loan Glossary and AbbreviationsReferencesIndex