MODERN PROJECT FI NANCE

A Casebook
Benjamin C. Esty
Joh n W i l e y & S ons , I n c .
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Tabl e of Contents
Acknowledgments v
About the Author vii
1 Introduction to Modern Project Finance 1
2 An Overview of Project Finance 23
3 Why Study Large Projects? 53
MODU L E 1 . S TRU CTU RING PROJECTS 69
4 The Chad-Cameroon Petroleum Development and Pipeline Project (A) 71
5 Australia-Japan Cable: Structuring the Project Company 93
6 Calpine Corporation: The Evolution from Project to Corporate Finance 112
7 BP Amoco (A): Policy Statement on the Use of Project Finance 133
8 BP Amoco (B): Financing Development of the Caspian Oil Fields 151
MODU L E 2. V AL U ING PROJECTS 167
9 Airbus A3XX: Developing the Worlds Largest Commercial Jet (A) 169
10 Nghe.An Tate & Lyle Sugar Company (Vietnam) 190
11 An Economic Framework for Assessing Development Impact 211
12 Texas High-Speed Rail Corporation 223
13 Contractual Innovation in the UK Energy Markets: Enron Europe,
The Eastern Group, and the Sutton Bridge Project 243
14 Bidding for Antamina 265
MODU L E 3. MA N A G I N G RIS KY PROJECTS 277
15 Petrolera Zuata, Petrozuata C.A. 279
16 Poland's A2 Motorway 301
17 Restructuring Bulong's Project Debt 321
18 Mobile Energy Services Company 341
19 Financing the Mozal Project 359
MODU L E 4. FI NANCI NG PROJECTS 381
20 Chase s Strategy for Syndicating the Hong Kong Disneyland Loan (A) 383
21 The International Investor: Islamic Finance and the Equate Project 407
ix
x Table of Contents
22 Introduction to Islamic Finance 428
23 Financing PPL Corporation's Growth Strategy 441
24 Basel II: Assessing the Default and Loss Characteristics of Project
Finance Loans 463
25 Iridium LLC 485
REFERENCE MATERIAL
Project Finance Research, Data, and Information Sources 506
Project Finance Glossary 521
Index 543