INFRASTRUCTURE FINANCING - 2019/0

Module code: ENGM263

Module Overview

This module is aimed at familiarising students with the concept of the economics of infrastructure. It introduces the background behind investment and funding required for the financial planning of infrastructure and discusses the various forms of funding available for infrastructure (public, private and combined), including their merits and limitations. Financing models for different infrastructure sectors are described. Different types of risks associated with infrastructure investments are reviewed and their assessment and prioritisation within changing economic climates is studied.

Module provider

Civil and Environmental Engineering

Module Leader

IMAM Boulent (Civl Env Eng)

Number of Credits: 15

ECTS Credits: 7.5

Framework: FHEQ Level 7

JACs code: K421

Module cap (Maximum number of students): N/A

Module Availability

Semester 1

Prerequisites / Co-requisites

N/A

Module content

The module content includes the following topics:


  • Overview & Introduction



Infrastructure project types, History of infrastructure project finance, Risk identification & analysis, Banks & risk, Risk mitigation and valuation methods, Terminology and definitions in infrastructure finance


  • Funding Structures



Equity and debt, Government guarantee and Corporate guarantee structures, Project finance structure, Public private partnerships (PPP), Privatised public service utilities, Availability payments


  • Sources of Funds



Private equity, Pension and life insurance funds, Sovereign wealth funds, Cash-flow models and analysis, Development bank loans, Export and buyer credits, Bonds, Leasing, Mezzazine capital, Measures and indicators used by investors


  • Public vs Private Finance



Public private partnerships (PPP), Public sector comparator (PSC), Risk identification and allocation (PSC vs PPP), The EU bid process for PPP concessions, Project agreements, Key clauses and features, Sales contracts, Loan agreements


  • Case studies



Financing models on different infrastructure sectors including transport, energy, waste and water, municipal

This module is within core subject of Construction Management.

Assessment pattern

Assessment type Unit of assessment Weighting
Coursework ECONOMIC APPRAISAL OF AN INFRASTRUCTURE PROJECT 25
Examination 2 HOUR EXAM 75

Alternative Assessment

None.

Assessment Strategy

The assessment strategy is centred on two units of assessment:


  1. The end-of-semester examination provides students with the opportunity to demonstrate their ability to propose different financing models for infrastructure projects considering different sources of funding and types of risks (Learning outcomes 001, 002 and 004).

  2. The coursework tests the ability of the students to appreciate economic, environmental and social constraints and risks towards prioritisation of infrastructure projects and propose cash flow models for economic analysis (Learning outcome 002, 003, 004 and 005).



Where appropriate, feedback will be given during the discussions in lectures and online through SurreyLearn for the self-study questions that will be uploaded. Students will receive written feedback on the coursework report. 

Module aims

  • review the sources of funding and the financing models available for infrastructure planning and development
  • explain the parameters that are directing prioritisation of infrastructure investments
  • demonstrate how to develop various options for infrastructural goals with a view to determine the optimum through the use of cash flow analysis.
  • review the potential risks associated with investments in infrastructure

Learning outcomes

Attributes Developed Ref
001 Propose funding structures for different infrastructure sectors KCPT SM6M, EL5M, P5
002 Assess financial constraints in the context of economic, social and environmental pressures KCPT D1, EL5M
003 Undertake financial and economic appraisals of infrastructure projects KCPT SM6M, D1, EL5M, EL6M, P8
004 Assess the risks associated with infrastructure investments and propose mitigation actions KCPT D1, EL6M, EL7M, P8
005 Write reports that are well organised and effectively communicate all key information T D6

Attributes Developed

C - Cognitive/analytical

K - Subject knowledge

T - Transferable skills

P - Professional/Practical skills

Overall student workload

Independent Study Hours: 117

Lecture Hours: 33

Methods of Teaching / Learning

The module is delivered principally by lectures and discussion of case studies, which may include guest speakers from industry.

Indicated Lecture Hours (which may also include seminars, tutorials, workshops and other contact time) are approximate and may include in-class tests where one or more of these are an assessment on the module. In-class tests are scheduled/organised separately to taught content and will be published on to student personal timetables, where they apply to taken modules, as soon as they are finalised by central administration. This will usually be after the initial publication of the teaching timetable for the relevant semester.

Reading list

Reading list for INFRASTRUCTURE FINANCING : http://aspire.surrey.ac.uk/modules/engm263

Programmes this module appears in

Programme Semester Classification Qualifying conditions
Infrastructure Engineering and Management MSc 1 Compulsory A weighted aggregate mark of 50% is required to pass the module
Advanced Geotechnical Engineering MSc 1 Optional A weighted aggregate mark of 50% is required to pass the module
Civil Engineering MSc 1 Optional A weighted aggregate mark of 50% is required to pass the module
Structural Engineering MSc 1 Optional A weighted aggregate mark of 50% is required to pass the module
Bridge Engineering MSc 1 Optional A weighted aggregate mark of 50% is required to pass the module
Civil Engineering MEng 1 Optional A weighted aggregate mark of 50% is required to pass the module

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2019/0 academic year.