INFRASTRUCTURE FINANCING - 2020/1

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

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

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

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

https://readinglists.surrey.ac.uk
Upon accessing the reading list, please search for the module using the module code: ENGM263

Programmes this module appears in

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 2020/1 academic year.