Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit

MGDI61961

Financing Projects

Release date: 21/01/2026 14:00 (GMT)

Submission deadline: 23/01/2026

Answer three of the following questions.

1)  An infrastructure project of your choice has been financed with 85% senior debt and  15%  equity  and  is  now  in  the  early  operation  stage  but  generating insufficient revenues to service the debt. Assess the project by considering two different ways of refinancing the project to ensure the project does not go into default.  You  should  show  the  cumulative  cash  flows  for  each  refinancing method and the financial instruments used and the financial metrics for each solution.

2)   An Independent Power Plant (IPP) to be built in India has an estimated CAPEX of $US50  million  and  an  OPEX  of  $US5  million  per  year  over  a  10-year operating period. The plant has a construction period of 1 year. Gas will  be purchased from a State-owned gas supplier (supply contract) and electricity (offtake  contract)  sold  to  a  State  owned  Transmission  company.  The concessioner  through  a  Special  Project  Vehicle  (SPV)  seeks  a  minimum acceptable Rate of Return (IRR) of 10%. Explain how you would finance this project and identify the major risks over the concession period.

3)   A medium sized clinic has insufficient funds available to provide the outpatient treatments it was designed for such as dialysis, X rays and dental treatment which all require expensive equipment and trained operatives. The hospital asks you to assess how services sold under a concession can be used to solve this problem.

4)   Explain  how  microfinance  can  be  used  to  develop  a  small  business  in  a developing country. Provide and discuss an example of a project of your choice funded by micro-loan.

5)   Explain the benefits of PPP projects in the education sector and provide an example  of  how  a  primary  school  would  be  procured  using  this  contract strategy. Show how Value for Money (VfM) is tested using the Public Sector Comparator (PSC) and the cumulative cash flow over the concession period.