• 059667 - FINANCE AND MANAGEMENT OF INFRASTRUCTURE INVESTMENTS MODULE 2

The second module of the course aims to provide students with the necessary theoretical tools to comprehend alternative contracts, financial arrangements and instruments that could be used to finance infrastructure investments, comparing advantages and disadvantages of traditional and more innovative solutions. Furthermore, the course will present alternative risk management techniques, allowing to model the uncertainty associated with different factors that may affect the overall impact of infrastructure investments. Mathematical finance and financial modelling concepts will allow students to understand how to compare different financing alternatives. Case studies with a specific focus on the Transportation sector will provide students with a methodological framework to manage infrastructure projects, being able to evaluate and compare alternative financial structures and to assess the financial robustness and profitability of the investment. Finally, seminars with practitioners and experts in the field of infrastructure investments will allow students to comprehend and discuss the practical application of the theoretical concepts introduced during the course in real infrastructure projects.

In terms of acquired knowledge and understanding, students will be able to:

• Describe the relationships between sound theoretical references in corporate and project finance and the concrete funding of infrastructure projects;
• Define the main contractual arrangements in infrastructure development projects: infrastructure financing as a network of contracts;
• Examine different types/sources of risks at different stages of project development;
• Show references to, and analysis of, concrete case studies in the financing of infrastructures.
• Comprehend mathematical finance and financial modelling concepts to compare advantages and disadvantages of alternative financial structures of infrastructure investments.

Students will be able to:  

• Compare alternative financial solutions for infrastructure projects based on the usage of different financial instruments and approaches;
• Illustrate the allocation of risks in infrastructures projects comparing advantages and disadvantages of alternative contractual arrangements and instruments;
• Examine economic and financial plan models, being able to discuss the bankability, the financial feasibility and financial profitability of projects.

The course contents are delivered through lectures and exercises sessions. The Module II of the course covers the following topics:

• Project finance vs corporate finance;
• Public private partnership and concession contracts;
• Fundamentals of financial calculus;
• Elements of risk assessment and management.

• SDG9 - INDUSTRY, INNOVATION AND INFRASTRUCTURE

No pre-requisites are required.

Students will pass the course after successfully take a written exam. The exam consists in a set of exercises and theoretical questions.

The exam aims at verifying student's:

• Understanding of the theoretical frameworks to finance and manage infrastructure projects;
• Ability to define and evaluate project performances;
• Ability to define, evaluate and compare different financial solutions for infrastructure investments.

The exam of the course corresponding to 10 cfu refers to topics of Modules I and II. The exam of the course corresponding to 5 CFU refers to topics of Module II.

To pass the course, students must successfully pass the written exam with a grade higher or equal to 18.