GRA 8505 Project Evaluation, Financing and Risk Management
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APPLIES TO ACADEMIC YEAR 2016/2017 |
GRA 8505 Project Evaluation, Financing and Risk Management
Responsible for the course
Jon Lereim, (IFP)
Department
Department of Leadership and Organizational Behaviour
Term
According to study plan
ECTS Credits
5
Language of instruction
English
Introduction
This course is part of the Executive Master of Management in Energy in cooperation with BI Norwegian Business School and IFP School.
The topics in this course will cover the key concepts, tools and techniques of project finance and financial management and show students how to apply them to companies in the energy sector
Learning outcome
Acquired knowledge
Throughout these courses, the instructors will attempt to clarify the linkages between corporate strategy, day-to-day operational decisions and the firm’s financial performance at a given moment and over time.
Skills
Through lectures and case studies with academics and business professionals, participants will learn how to measure and diagnose business performance, how to choose between competing investment proposals and select projects that create value, how to make financing decisions that optimize risk and return and how to value projects and businesses.
Prerequisites
Granted admission to the Executive Master of Management in Energy programme.
Compulsory reading
Books:
John D. Finnerty. 2005. Project Financing: Asset-based Financial Engineering. Wiley Finance. Chapters 1 & 2
Other:
Students should review the introductory course of Financial Management which they had seen during the first module of Masters program
Recommended reading
Books:
Albert Thumann and Eric A. Woodroof. 2008. Energy Project Financing. The Fairmount Press
Bruce Marcus. 2005. Competing for Capital: Investor Relations in a Dynamic World. Wiley Finance
Christopher L. Culp and J. Paul Forrester. 201. Structured Financing Techniques in Oil & Gas Project Finance
Articles:
Jeffrey S. Muñoz, Financing of oil and gas transactions – Texas Journal of Oil, Gas and Energy Law, 2009. Financing of oil and gas transactions -Texas Journal of Oil. Gas and Energy Law, 2009
Mary Jean Bürer, Rolf Wüstenhagen. Which renewable energy policy is a venture capitalist’s best friend? Empirical evidence from a survey of international cleantech investors. Energy Policy, 2009
Other:
Ernst & Young. 2015. Renewable Energy Country Attractiveness Indices
UNEP Finance Initiative. Global Trends in Renewable Energy Investment 2016 – 2016
Course outline
Project Finance & Evaluation
- Theory and practice of financing projects in the energy sector
- Role of understanding, analyzing and anticipating political, technical and economic risks when evaluating a project finance plan
- Project finance risk management techniques: contractual, operational, logistical…
- Assessing strategic economic, industrial investment decisions
- Illustration of the roles and interests of public, private and other stakeholders involved in a large energy project
Equity Analysis and Credit Rating
- Equity valuation techniques: DCF, proxy multiples, sum of parts
- Role of equity analysts in the capital markets and importance for the energy sector
- Fundamentals of credit scoring: how do banks and credit ratings agencies assess the credit-worthiness of companies. Examples from the energy sector.
Energy Industry Risk Management
- The Risk Management Process
- Risk mapping
- Risk mitigation
- Prevention
- Transfer
- Financing
- The Net Risk Exposure
Renewable Energy Project Financing
- Intro : 3 main actors and their respective goals
- Project Development
- Regulation
- Project Financing
- Construction
- Operations & Maintenance : quick overview
- Case Study
Computer-based tools
It's Learning, Presentations and Excel-based financial modeling
Learning process and workload
1 ECTS credit corresponds to a workload of 26-30 hours.
Attendance to all sessions in the course is compulsory. If you have to miss part(s) of the course you must ask in advance for leave of absence. More than 25% absence in a course will require retaking the entire course. It's the student's own responsibility to obtain any information provided in class that is not included on the course homepage/ It's learning or other course materials
Examination
The students are evaluated through an individual 72 hours home exam, counting for 5 credits.
Specific information regarding student evaluation beyond the information given in the course description will be provided in class.
Examination code(s)
GRA 85051 - Home exam; counts for 100% to pass the course GRA 8505; 5 credits.
The course is a part of a full Executive Master of Management in Energy (EMME) and examination in all courses must be passed in order to obtain a certificate.
Examination support materials
Re-sit examination
Re-takes are only possible at the next time a course will be held. When course evaluation consists of class participation or continuous assessment, the whole course must be re-evaluated when a student wants to retake a exam. Retake examinations entail an extra examination fee.
Additional information