MODERN PROJECT FINANCEA Casebook

Benjamin C. Esty

John Wiley & Sons, Inc. ULBDarmsad,

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Table of Contents

Acknowledgments vAbout the Author vii

1 Introduction to Modern Project Finance 12 An Overview of Project Finance 233 Why Study Large Projects? 53

MODULE 1. STRUCTURING PROJECTS 69

4 The Chad-Cameroon Petroleum Development and Pipeline Project (A) 715 Australia-Japan Cable: Structuring the Project Company 936 Calpine Corporation: The Evolution from Project to Corporate Finance 1127 BP Amoco (A): Policy Statement on the Use of Project Finance 1338 BP Amoco (B): Financing Development of the Caspian Oil Fields 151

MODULE 2. VALUING PROJECTS 167

9 Airbus A3XX: Developing the Worlds Largest Commercial Jet (A) 16910 Nghe.An Tate & Lyle Sugar Company (Vietnam) 19011 An Economic Framework for Assessing Development Impact 21112 Texas High-Speed Rail Corporation 22313 Contractual Innovation in the UK Energy Markets: Enron Europe,

The Eastern Group, and the Sutton Bridge Project 24314 Bidding for Antamina 265

MODULE 3. MANAGING RISKY PROJECTS 277

15 Petrolera Zuata, Petrozuata C.A. 27916 Poland's A2 Motorway 30117 Restructuring Bulong's Project Debt 32118 Mobile Energy Services Company 34119 Financing the Mozal Project 359

MODULE 4. FINANCING PROJECTS 381

20 Chase s Strategy for Syndicating the Hong Kong Disneyland Loan (A) 38321 The International Investor: Islamic Finance and the Equate Project 407

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22 Introduction to Islamic Finance 42823 Financing PPL Corporation's Growth Strategy 44124 Basel II: Assessing the Default and Loss Characteristics of Project

Finance Loans 46325 Iridium LLC 485

REFERENCE MATERIAL

Project Finance Research, Data, and Information Sources 506Project Finance Glossary 521

Index 543