Roles of financial analysis specialists and financial management specialists 2. The internal rate of return of the mozal project has been calculated using the projected cash flows presented in the exhibit 6 of case study, however, the. Apr 15, 2010 the financing of the mozal project in mozambique slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Finally, we analyze project finance loans because governance by. Hence, longermaturity loans would be cheaper than shorterterm credits. For decades, project finance has been the preferred form of financing for large. The financing can happen at any stage of a businesss development. In conventional direct financing, lenders look at the firms entire asset portfolio to create the cash flow to service their loans. Because of the challenges presented to the community, bhp billiton and its partners created the mozal community development trust mcdt, which worked to improve the infrastructure, social services, health care. Often bandied about in trade journals and industry conferences as a new financing technique, project finance is actually a. Definition of project finance the term project finance is used loosely by academics, bankers and journalists to describe a range of financing arrangements. A vertical analysis was performed, which also involved an industry comparison. Does funding huge capital outlay projects through project finance.
Financing the mozal project in mozambique hausarbeiten. Third, we want to broaden the readers horizons with new trends in the industry. Financing the mozal project case harvard business school. What is the real expected return using the capm so, why would gencorpalusaf invest in the mozal proje. Financial analysis and appraisal of projects chapter 3, page 2 of 43 3. To reduce and overcome the political risk, the international finance corporation ifc was asked to analyze the project and to be. Financing the mozal project in mozambique grin publishing. Financing the mozal project case solution and analysis, hbr case. In project financing, it is the cash flow of the project that. Financing the mozal project in mozambique maximilian wegener ivan ivanov frederik schreus elaboration business economics investment and finance publish your bachelors or masters thesis, dissertation, term paper or essay.
Investment in the project on the part of the ifc would generate valuable social, financial, and economic benefits, not only for the people and government of mozambique but on a more global level as well, allowing the international investors, suppliers, distributors. Primary al productionaluminium prices are generally very volatile. Project financing boston national capital partners. The structuring and financing of energy infrastructure. Undertaking a project like the mozal project in a different country bears many risks and exposes investors to different country level threats that have to be dealt with in advance in order to secure enough financing funds. They integrate the financial analysis of the project within the overall financial framework and financial management of the executing agency ea. Project finance is the financial analysis of the complete lifecycle of a project. While project preparation is the process that converts a project idea into a formal plan, the overall objective of appraising a project is for the. Financing the mozal project case solution and analysis. Financial modelling of project financing transactions for more info on this topic. Unit i project introduction objectives of the lesson. Infrastructure developments, private public partnerships, large scale projects. Financing the mozal project case solution term paper warehouse.
Financing the mozal project in mozambique maximilian wegener ivan ivanov. Explore mba finance projects pdf, financial management projects topics, finance project topics list or ideas, accounting based research projects, latest synopsis examples, abstract, base papers, fm thesis ideas, corporate phd dissertation for financial management students fm, reports in pdf, doc and ppt for final year mba, bba diploma, bsc, msc, btech and mtech students for the year 2015. Download citation financing the mozal project subject areas. Applications and sectors 19 chapter 3 project characteristics, risk analysis, and risk management 31 chapter 4 the role of advisors in a project finance deal 63 chapter 5 valuing the project and project cash flow analysis 101 chapter 6 financing the deal 147 chapter 7 legal aspects of project finance 233. Because of the challenges presented to the community, bhp billiton and its partners created the mozal community development trust mcdt, which worked to improve the infrastructure, social services, health care and the community. The financing of the mozal project in mozambique slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Financing the mozal project 200005 countrys damaged electricity. Financing the mozal project case solution and analysis, hbr. The founder of a webbased ims for schools must negotiate a term sheet, determine funding needs, value her company, and finalize a venture deal.
Bhp billiton and mozal b case solution and analysis, hbs. Third, it examines the type of capital and debt in project financing. Exhibit 9a provides a summary of ifc approvals and commitments since 1988. Financing the mozal project case study solution, financing the mozal project case study analysis, subjects covered capital investments developing countries emerging markets political risk project finance by benjamin c. Financing the mozal project case solution, financing the mozal project case analysis, financing the mozal project case study solution, question1. Mozal project final case study financing the mozal project. In june 1997, a team from the international finance corp. Project financing discipline includes understanding the rationale for project financing, how to prepare the financial plan, assess the risks, design the financing mix, and raise the funds. Because of the challenges that the community has presented bhp billiton and its partners have created the mozal mcdt community development trust, who worked to improve infrastructure, social services and community health care. The ifc should immediately seize the opportunity presented in the financing of mozal. Mozal project final case study financing the mozal.
Bhp billiton began with the construction of phase 1 of the mozal aluminum smelter in 1998. Statistical analysis shows that project finance loans arranged for u. Resources and strategies for success albert thumann. However, project financing should be differentiated from conventional direct financing, or what may be termed financing on a firms general credit. Mar 24, 2008 bhp billiton and mozal a case analysis, bhp billiton and mozal a case study solution, bhp billiton and mozal a xls file, bhp billiton and mozal a excel file, subjects covered community relations diversity environmental protection foreign investment stakeholders by pat werhane, jenny mead, laura pincus hartman so. Currency risk in project finance hard currency loans can create a currency risk. Financing the mozal project case analysis corporate finance byvivek kumar 1 case brief time period 1997 location. Bhp billiton has begun construction of phase 1 of the mozal aluminum smelter in 1998. Project finance a primer on the project finance industry. An entrepreneur is forced to analyze the tradeoffs between different equity providers through a detailed analysis of venture financing terms and cash flow forecasts. Sources of finance the financing of your business is the most fundamental aspect of its management.
Financing the mozal project case analysis, financing the mozal project case study solution, financing the mozal project xls file, financing the mozal project excel file, subjects covered capital investments developing countries emerging markets political risk project finance by benjamin c. In addition, one must understand the cogent analyses of why some project financing plans have succeeded while others have failed. Based on this strategy, the paper then analyzes various financial tools that ifis can use to stimulate local currency financing in order to help countries meet their development goals while limiting their exposure to currency risk. Financing the mozal project harvard business publishing education.
Typically, a costbenefit analysis is used to determine if the economic benefits of a project are larger than the economic costs. In june 1997, a group from the international finance corp. The financial analysis of apple inc is based on evaluating company and industry data from various sources. Financial modelling of project financing transactions robert j lawrence bschons, msc jasmine lee fiaa. Get the financing right and you will have a healthy business, positive cash flows and ultimately a profitable enterprise. Investors in the mozal project face different types of risks including construction, operating and sovereign risk. The wharton school project finance teaching note 3 there is no singular definition of project finance. Explore mba finance projects pdf, financial management projects topics, finance project topics list or ideas, accounting based research projects, latest synopsis examples, abstract, base papers, fm thesis ideas, corporate phd dissertation for financial management students fm, reports in pdf, doc and ppt for final year mba, bba diploma, bsc, msc, btech and mtech students for the year 2015 and 2016. Financing the mozal project case solution and analysis, hbs. Project finance finding the right sources of funding. The wharton school project finance teaching note 2 i.
Case study financing the mozal project abstract this document intends to give an answer to the second case study of corporate governance and restructuring course, financing the mozal project, which focuses on project finance within the african project of aluminium smelter, the mozal structure. Some of the methods used to limit these risks are identified. The structuring and financing of energy infrastructure projects, financing gaps and recommendations regarding the new tene. Emphasis is on the financing of the project, and since allocating risk is the essence of project financing, the thesis describes the allocation of risks to the parties best able to manage them. The paper analyses the role and stakes of each sponsor of the project. Group 2 vivek agrawal 203 shubhra sanghi 229 nimish lahoti 257 asis kumar mandal 325 vivek bhatia 356 mahak mehra 427 aluminium industry two important facts. Financing the mozal project in mozambique publish your. If you continue browsing the site, you agree to the use of cookies on this website.
Four factors made this recommendation controversial. Recourse to cash flows generated by the project, not to cash flows of the sponsors hence minimise the impact of a bad performing project on the sponsors own business who uses project financing. A trend analysis was performed using data for the last five years, and presented in excel charts and tables. Financing the mozal project case solution term paper.
Since the project involves an investment in a foreign country and the project will be exposed to the government act of privatizing the mozal project and this was the reason why gencor elected to finance the project in the form of the project and financing and did not opt for the corporate financing option. In addition, one must understand the cogent analyses of why some project financing. Financing the mozal project case solution, financing the mozal project case analysis, financing the mozal project case study solution. In project finance, credit risk tends to be relatively high at project inception and to diminish over the life of the project. Project finance is the process of financing a specific economic unit that the sponsors create, in which creditors share much of the ventures business risk and funding is obtained strictly for the. Risk allocation and mitigation methods for financing cross. It is june 1997, and a team from the international finance corp. The first phase consisted of an analysis of literature on project finance, the cross border project context and risk management processes and, the further analysis of fourteen case studies where cross border projects have used project finance. Energy project financing regulation body of knowledge. Financing the mozal project case solution, this case is about competition, costs, emerging markets, entrepreneurial finance, government, it, project management, risk management, strategy execution p. Financing the mozal project case solution,financing the mozal project case analysis, financing the mozal project case study solution, question1. Bhp billiton and mozal a case analysis, bhp billiton and mozal a case study solution, bhp billiton and mozal a xls file, bhp billiton and mozal a excel file, subjects covered community relations diversity environmental protection foreign investment stakeholders by pat werhane, jenny mead, laura pincus hartman so.
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