Assessment 2: Assignment
You need to choose a real-world project finance case study. A good place to start is a book by Henry Davis “Project Finance: practical case studies”, volumes I and II.
You need to prepare a 2000-word document describing your case:
• The purpose of the project
• The financing structure
• Key risks
• Principal problems and lessons learnt.
Learning outcomes tested:
• LO1. Understand the exposure of lending institutions to credit risk;
• LO2. Have knowledge of credit rating systems and their application
• LO3. Ability to measure credit risk using quantitative methodologies
• LO4. Apply credit risk management techniques
• LO5. Have a critical awareness of current issues in credit risk
Format and referencing: (15 marks)
You will need to include a title page, Introduction, discussion, evidence, analysis, summary and conclusion.
Using academic Harvard style referencing figure prominently in the marks attributed for this bit.
Analysis of project finance: (25 marks)
You need to demonstrate knowledge of what is meant by project finance.
You should then address why you chose your case. Of the 25 marks 5 will be awarded to explaining and defining project finance, 10 marks will be awarded to the reason for choosing the case ( e.g. explanation how country benefits from this project), and 10 marks will be awarded to analysing the purpose of the project.
Analysis of the source of finance and financing structure: (30 marks)
15 marks will be given to extracting information and calculation ratios, and 15 marks will be awarded for an appropriate analysis and evaluation.
Identifying credit risks, principle problem and lessons learned: (30 marks)
15 marks will be given for referring to two key credit risks and 15 marks will be given to lessons learned.
