NCFM PROJECT FINANCE

 Project Finance Background 

• Evolution of project finance
• Project Types
• Critical steps in a project
• Market Analysis
• Background
• Market Sizing: (i) Demand function estimation (ii) Rule of Thumb (iii) Experts’ Poll
• Consumer, Customer and Influencer
• Market Insight areas
• Market Research Approaches
• Data Cleaning and Analysis
• Business Model, Competencies and Promoter Analysis

 Business Model 

• Competencies: (i) Core competency (ii) Competency Match
• Promoter Analysis: (i) Track Record (ii) Financial Standing (iii) Integrity
• Estimating Cost of Project
• Project specifications
• Estimating Fixed Capital Investment in Project
• Estimating working capital investment in the project
• Project Feasibility Analysis
• Background
• Net Present Value (NPV)
• Profit v/s Cash Flow
• Discount Rate
• Tax-Shield on Interest
• Tax-Shield on depreciation
• Internal Rate of Return (IRR)
• XIRR
• MIRR
• Project IRR and Equity IRR
• Payback Period
• Discounted payback period
• Economic IRR
• Financial Projections
• Background
• Assumptions
• Cost of Project & Means of Financing
• Projected Profit & Loss Account
• Projected Balance Sheet
• Projected Funds Flow
• Project IRR
• Equity IRR
• Loan Servicing Capability: (i) Interest Coverage Ratio (ICR) (ii) Debt Service Coverage
• Ratio (DSCR) (iii) Long Term Debt Service Coverage Ratio (LDR)
• Sensitivity Analysis
• Building Scenarios
• Project Finance and their Sources
• Prudence in Mix of Long Term and Short Term Finance
• Forms of Long Term Project Finance
• Forms of Short Term Project Finance
• Lease
• Role of Non-Banking Finance Companies (NBFC)
• Loan Documentation? Infrastructure and Public Private Partnerships
• Background
• PPP Models
• Parties to a PPP Model
• PPP Process
• Model Concession Agreements (MCA): (i) Highways (ii) Greenfield Airports (iii) Transmission
• of Electricity
• Novel Structures in Infrastructure Finance
• Background
• Take-out Financing
• Securitization
• Viability Gap Financing (VGF)
• Infrastructure Debt Fund
• High Level Committee on Financing of Infrastructure
• Taxation and Incentives
• Taxation:
• Depreciation
• Amortization of Preliminary Expenses
• Amortization of Telecom License Fees
• Interest on borrowed capital
• Disallowances under the Act
• Expenses, in General
• Compulsory Audit
• Incentives
• Maharashtra Package Scheme of Incentives
• Project Risks and their mitigation
• Background
• Project Conceptualization Risk
• Financial Closure Risk
• Project Construction Risk
• Political Risk
• Market Risk
• Supply Chain Risk
• Policy Risk
• Exchange Risk
• Environmental Risk
• Force Majeure