COURSE INFORMATION
Course Title: PROJECT EVALUATION AND FINANCE I
Code Course Type Regular Semester Theory Practice Lab Credits ECTS
BAF 403 B 1 3 0 0 3 7.5
Lecturer and Office Hours: Uğur Ergün
Second Lecturer(s): NA
Teaching Assistant(s) and Office Hours: NA
Language: English
Compulsory/Elective: Elective
Classroom and Meeting Time:
Course Description: This course considers financial and economic analysis of private and public projects associated with the operations in domestic and international environment. Due to the globalization and emergence of opportunities for private and public organizations became necessary to expand market shares, production and servicing capabilities, which are held by use of various project concepts. However, some projects implemented have not always fulfilled expectations as a result of inefficient planning, selection and evaluations. Learning Objectives: 1. Develop teamwork and project management skills. 2. Integrate and synthesize students knowledge. 3. Practice applying research methods and tools. 4. Refine projects.
Course Objectives: The purpose of the course is to understand what project finance is, why it is used, and how it is used. Students will learn what the necessary elements are that support the use of project finance to include contractual agreements, technology, sponsors, risk identification and mitigation, sources of capital, financial structuring, the use of financial modeling, accounting practices and considerations, and tax considerations.
COURSE OUTLINE
Week Topics
1 Syllabus Review
2 The theory and practice of project finance
3 The Market for project finance: Applications and Sectors
4 Project Characteristics, Risk analyses and Risk Management
5 The role of Advisory in Project Finance Deal
6 Valuing the Project and Project Cash Flow Analysis
7 Financing the Deal
8 Legal Aspects of Project Finance
9 Mid-term exam
10 Case Presentation
11 Case Presentation
12 Case Presentation
13 Case Presentation
14 Case Presentation
Prerequisite(s):
Textbook: Yescombe, E. R., Principles of Project Finance, 2nd Edition, Academic Press, (2014)Stefano, Gatti., (2013),Project Finance in Theory and Practice, Designing, Structuring, and Financing Private and Public Projects (2nd Edition).
Other References: 1. Andrew Fight, Introduction to project finance. 2. Meri Williams, Principles of project management. 3. Axell Sell, Project evaluation: An Integrated financial and economic analysis, Gower publishing. 4. Kennedy, Robert E., InterGen and the Quezon Power Project: Building Infrastructure in Emerging Markets, Harvard Business School Case. 5. Esty, Benjamin C. and Matthew Mateo Millet, PetroleraZuata, Petrozuata C. A., Harvard Business School Case
Laboratory Work:
Computer Usage:
Others: No
COURSE LEARNING OUTCOMES
1 To understand fundamental principle of project evaluation
2 To learn and evaluate the implications, in terms of value creation
3 To analyze complex, unstructured qualitative and quantitative problems, using appropriate tools.
4 To comprehend and critically evaluate information presented in written and numeric form.
5 To express ideas clearly, logically and persuasively in oral and written communication.
COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES
(Blank : no contribution, 1: least contribution ... 5: highest contribution)
No Program Competencies Cont.
MSc BAF Program
1 The students are gained the ability to look at the problems of daily life from a broader perspective. They gain the needed skills not only to understand economic problems in banking and finance but also to construct a model and defend in meaningful way. 3
2 They have knowledge about the finance and banking. 3
3 They have knowledge about the money and banking. 3
4 They have knowledge about the international finance and banking. 3
5 They have ability to use mathematical and statistical methods in banking and finance. 3
6 They know how to use computer programs in both daily office usage and statistical data evaluations in banking and finance department. 3
7 They have necessary banking and finance skills that needed in private and public sector. 3
8 They are intended to be specialist in one of departmental fields that they choose from the list of general economics, finance economics, public finance, corporate finance, finance management, international finance markets and institutions, banking and central banking, international finance and banking, money and banking, international trade and banking. 3
9 They have ability to utilize fundamental economic theories and tools to solve economic problems in banking and finance. 3
10 They are aware of the fact that banking and finance is a social science and they respect the social perspectives and social values of the society’s ethics. 3
COURSE EVALUATION METHOD
Method Quantity Percentage
Midterm Exam(s)
1
40
Presentation
1
50
Attendance
10
Total Percent: 100%
ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)
Activities Quantity Duration(Hours) Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours) 16 3 48
Hours for off-the-classroom study (Pre-study, practice) 16 3 48
Mid-terms 1 20 20
Assignments
Final examination 1 24 24
Other 1 10 10
Total Work Load:
150
Total Work Load/25(h):
6
ECTS Credit of the Course:
7.5