Units
Project Financing
Unit code: BEB114
Contact hours:
Credit points: 12
Information about fees and unit costs
Project is growing in complexity and size. Many projects never get off the ground due to insufficient financing. It is therefore necessary for project managers to know the sources and cost of project funds in order to package a financially viable project for approval. This unit introduces capital budgeting, project finance, and risk analysis. It covers the capital allocation framework, project cash flows, cost of capital, financial risk analysis, and how various types of projects are financed.
Availability
| Semester | Available |
|---|---|
| 2013 Semester 2 | Yes |
Sample subject outline - Semester 2 2013
Note: Subject outlines often change before the semester begins. Below is a sample outline.
Rationale
Project is growing in complexity and size. Many projects never get off the ground due to insufficient financing. It is therefore necessary for project managers to know the sources and cost of project finance in order to package a financially viable project for approval. This unit provides you with the understanding of project finance in the context of project management practices.
Aims
The aim of this unit is to provide you with the understanding of the main features of project finance and apply it in the project management environment.
Objectives
On Completion of this unit you should be able to:
1. Understand the key characteristics of project finance
2. Understand key risk involved in project finance and the techniques available to mitigate these risks
3. Understand the techniques for effective evaluation of project finance
4. Describe the key strategies to manage cash flows risk and financial risks in project finance
Content
- Introduction to project finance
- Characteristics of project finance
- Risk management framework
- Identify key project risk
- Risk management strategies for project
- Source of project finance (Financial instruments)
- Finance mathematics
- Evaluating project finance deal
- Cash flow risks
- Financial risks
Approaches to Teaching and Learning
The approach taken in this involves:
- listening to lecturers and engaging in discussions.
- exploring creative ways to solve problems
- practising tutorial exercises to stimulate understanding of concepts learnt
Assessment
This unit incorporates combined formative/summative assessment. Assessment item 1 and 2 is designed as a formative assessment where students can reflect on the materials learnt in order to perform the assessment. Feedback will be given after each assessment has been assessed. Assessment item no 3 serves as a summative assessment where students learning can be assessed.Assessment item 1 & 2 will be marked using criterion referenced assessment (CRA) and returned with feedback to enable students to understand how they are progressing and how their work can be improved.
Assessment name:
Report
Description:
Risk Management in project finance.
Students are required to identify the key risks involved in a given project finance deal and propose the appropriate techniques to mitigate the identified risks.
Relates to objectives:
1, 2
Weight:
30%
Internal or external:
Internal
Group or individual:
Group
Due date:
Week 5
Assessment name:
Problem Solving Task
Description:
Evaluating project finance deal.
Relates to objectives:
1, 2
Weight:
30%
Internal or external:
Internal
Group or individual:
Individual
Due date:
Week 10
Assessment name:
Examination (written)
Description:
Final Examination.
1.5 Hour examination consists of multiple choice questions and short answer questions.
Relates to objectives:
1, 2, 3, 4
Weight:
40%
Internal or external:
Internal
Group or individual:
Individual
Due date:
Exam period
Academic Honesty
QUT is committed to maintaining high academic standards to protect the value of its qualifications. To assist you in assuring the academic integrity of your assessment you are encouraged to make use of the support materials and services available to help you consider and check your assessment items. Important information about the university's approach to academic integrity of assessment is on your unit Blackboard site.
A breach of academic integrity is regarded as Student Misconduct and can lead to the imposition of penalties.
Resource materials
1. Principles of Project and Infrastructure Finance, Willie Tan, Taylor & Francis, 2007
2. Project Finance for Construction & Infrastructure: Principles & Case Studies, Frederik Pretorius, et al., Oxford: Blackwell Pub., 2008
3. Introduction to Project Finance, Andrew Fight, Oxford; Burlington, MA : Elsevier/Butterworth-Heinemann, 2006
4. Principles of Project Finance, E.R. Yescombe, London: Academic Press, 2002
5. Project Finance in Construction Anthony Merna, Yang Chu, and Faishal Fahad; Wiley-Blackwell, 2010
Additional Costs:
None
Risk assessment statement
You will undertake lectures, tutorials (face-to-face sessions) in the traditional classrooms and lecture theatres at QUT Gardens Point Campus. As such, there are no extraordinary workplace health and safety issues or risks associated with any components of the unit.
Disclaimer - Offer of some units is subject to viability, and information in these Unit Outlines is subject to change prior to commencement of semester.
Last modified: 28-May-2012
