Principles of Project Finance
Product Description
This introduction for practitioners offers a balanced view of project financing, integrating legal, contractual, scheduling, and other areas that participate in large multiparty projects, large single-asset purchases, and broad-based financing programs for fleets of assets. It mixes theories and case studies but avoids becoming too oriented toward applications in any one particular industry. It focuses on the concepts and techniques required by project finance peopl… More >>
This book is a great reference …..the tables, the schematic drawings…great tool for finance professionals.
Rating: 5 / 5
Good book with the basic information you need to know about the topic. However, it’s expensive.
Rating: 4 / 5
Very comprehensive and very clear; after reading this book you know what project finance involves at a good level.
Rating: 5 / 5
The Best book for fundamental theory of project finance, integrated and described overall, a guidance to plan a project finance.
Rating: 5 / 5
Principles of Project Finance
E. R. Yescombe
Elsevier Academic Press
E. R. Yescombe’s Principles of Project Finance, published by Elsevier Academic Press, is an excellent and thorough practical treatment of project finance issues for professionals and others looking for a broad and deep understanding. At 344 pages, this book includes 13 chapters and a detailed glossary of terms.
Clearly this book is by an exceptionally experienced and talented author, who focuses on how to make the project work. Every chapter is a good chapter; I particularly found Chapter 8 interesting with its detailed discussion of project risks, including, e.g. EPC contracting issues (Engineering, Procurement and Construction contracts), commercial viability, completion risks, credit risks, construction cost overruns, delays, relocation of utilities, protesters, project dependencies, environmental risks, operating risks, technology risks, operating cost overruns, maintenance, long-term sales contracts, waste disposal, recourse to sponsor issues, and many more. Yescombe discusses numerous issues and potential situations, and provides suggestions for how to resolve the issue.
In the first section, chapters 1-5, Yescombe provides a detailed discussion of the basics of project finance, with numerous tables and charts. For example,
Chapter 1 is a general introduction to project finance,
Chapter 2 reviews key characteristics of project finance and why it is used
Chapter 3 discusses markets for raising project finance debt
Chapter 4 discusses initiation and structuring of project development and finance for private and public projects
Chapter 5 reviews procedures for obtaining project finance from private lenders
In the second section, chapters 6-7, Yescombe discusses project finance documentation:
Chapter 6 discusses the main Project Agreement, which is often an Offtake Contract or Concession Agreement
Chapter 7 reviews other project contracts, such as construction and operation of the project, raw materials and other inputs, insurance, etc.
In the third section, chapters 8-11, Yescombe reviews project finance risk:
Chapter 8 discusses project risk and mitigation from the viewpoint of lenders
Chapter 9 analyses the effect of macroeconomic risk, such as inflation, interest rates, exchange rates, on project finance, and mitigation efforts
Chapter 10 reviews effects of political risks on projects
Chapter 11 reviews mitigation of political risk, including insurance, guarantees, export credit agencies and development banks, etc.
In the last section, Yescombe discusses the financing structure for projects
Chapter 12 reviews the use of project financial models for investors and lenders
Chapter 13 demonstrates review and risk analysis during negotiation of project finance structure and terms
Yescombe’s Principles of Project Finance is a highly useful addition for anyone involved with project management and project finance, and serves as a useful reference.
By David Hoicka
Rating: 5 / 5