Core Module 3: Public-Private Partnerships (PPPs) and Concession Agreements
The golden rule of infrastructure investing is that risk must be allocated to the party best equipped to manage it.
Answer: d) All of the above
is measured by the equity internal rate of return (Equity IRR) and the net present value of equity cash flows . Shareholders require a return higher than their cost of equity, with the premium compensating for project risks.
Can be shared or absorbed by the public sector via availability payments. Breakdown of Key Course Modules and Quiz Themes Module 1: The Infrastructure Asset Class Can be shared or absorbed by the public
Quizzes in this section present specific scenarios and ask you to identify the appropriate mitigation strategy.
A recurring theme in the quizzes is the distinction between how corporations raise capital versus how infrastructure projects are funded.
This module introduces the fundamental structure of project finance.
Quizzes in this section test your ability to differentiate between corporate finance and project finance. This module introduces the fundamental structure of project
What does a negative covenant prohibit the SPV from doing?
A DSCR of means the project generates exactly enough cash to pay lenders, leaving no margin for error.
Solved using "Minimum Revenue Guarantees" or switching from a toll-based model to an availability payment model.
Focus on the "sources and uses of funds" during construction and operation phases, including the role of reserve accounts . Can be shared or absorbed by the public
: The questions will be integrated into a case study and may look like:
Which (e.g., PPPs, financial modeling, risk matrix) are you currently working on?
Cash Flow Available for Debt Service (Revenue - Operating Expenses - Taxes).