Postgraduate Course: Fundamentals of Infrastructure Finance (CMSE11478)
Course Outline
| School | Business School |
College | College of Arts, Humanities and Social Sciences |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Availability | Available to all students |
| SCQF Credits | 10 |
ECTS Credits | 5 |
| Summary | The Fundamentals of Infrastructure Finance course introduces the fundamentals for investment project appraisal, with a specific focus on low carbon and climate change adaptation infrastructure. The course will provide students with essential skills for undertaking project cash flow assessments and risk analyses. Students will come away from the course with the skills to both implement and critique project valuation methods. |
| Course description |
The course provides an overview of the different types of financial instruments and different participants involved in the development and financing of infrastructure assets. The course will teach students basic skills in building discounted cash flow models and apply these models to low carbon and adaptation projects.
The course will draw on both theoretical and applied concepts in delivering lectures on all topics. Lectures will also be delivered by experienced practitioners, with knowledge of infrastructure finance. In addition to introducing students to the wider literature, recent publications and case studies will be used to ensure that students will come out of the course with specific skills in the evaluation of risks and opportunities associated with infrastructure projects.
Outline Content:
1. Introduction to infrastructure as an asset class, key participants, and financing instruments
2. Discounting and present value
3. Investment project appraisal: NPV, IRR, and other metrics
4. Levelised cost of energy
5. Marginal abatement costs
6. Managing risk
Student Learning Experience:
Formal teaching occurs via lectures and tutorials. Much of the learning will be the result of students' own reading and reflection, and preparation for coursework. A high degree of student participation is expected, through in-class discussions. Scholarly endeavours are fundamentally about building on the discoveries and insights of others, and we hope that team cooperation will enrich all students. There will be time for questions and discussion in class as well as practice sessions for cash flow modelling.
Tutorial/seminar hours represent the minimum total live hours - online or in-person - a student can expect to receive on this course. These hours may be delivered in tutorial/seminar, lecture, workshop or other interactive whole class or small group format. These live hours may be supplemented by pre-recorded lecture material for students to engage with asynchronously.
|
Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
|
Co-requisites | |
| Prohibited Combinations | |
Other requirements | None |
Information for Visiting Students
| Pre-requisites | None |
| High Demand Course? |
Yes |
Course Delivery Information
|
| Academic year 2021/22, Not available to visiting students (SS1)
|
Quota: 52 |
| Course Start |
Block 1 (Sem 1) |
Timetable |
Timetable |
| Learning and Teaching activities (Further Info) |
Total Hours:
100
(
Seminar/Tutorial Hours 10,
Programme Level Learning and Teaching Hours 2,
Directed Learning and Independent Learning Hours
88 )
|
| Additional Information (Learning and Teaching) |
Seminar/Tutorial hrs are the min total live hrs, online or in-person, students can expect to receive
|
| Assessment (Further Info) |
Written Exam
0 %,
Coursework
100 %,
Practical Exam
0 %
|
| Additional Information (Assessment) |
100% coursework (individual) - assesses all course Learning Outcomes |
| Feedback |
Formative feedback:
Feedback on weekly exercise will be provided to students
|
| No Exam Information |
Learning Outcomes
On completion of this course, the student will be able to:
- Discuss the role of infrastructure in mitigating and adapting to climate change.
- Develop discounted cash flow models for infrastructure projects.
- Describe and develop strategies for managing different types of risk related to infrastructure finance.
|
Reading List
Brealey, R.A., Myers, S., and Marcus, A. (2020) Fundamentals of corporate finance. Tenth edition. New York, NY, McGraw-Hill Higher Education.
Weber, B., Staub-Bisang, M., Alfen, H. (2016) Infrastructure as an asset class¿: investment strategy, sustainability, project finance and PPP. 2nd edition. Chichester, Wiley.
World Bank (2018) Low-carbon infrastructure: an essential solution to climate change? Available from: https://blogs.worldbank.org/ppps/low-carbon-infrastructure-essential-solution-climate-change. |
Additional Information
| Graduate Attributes and Skills |
Knowledge and Understanding
After completing this course, students should be able to:
- Demonstrate a critical understanding of project investment analysis
- Apply the understanding of project analysis to solve problems related to infrastructure finance
- Develop overarching strategies for mitigating and/or transferring infrastructure project risks
Practice: Applied Knowledge, Skills and Understanding
After completing this course, students should be able to:
- Develop cash flow models for mitigation and adaptation infrastructure projects
- Calculate levelised cost of energy
- Advise on risk management approaches for infrastructure investment
Cognitive Skills
After completing this course, students should be able to:
- Critically evaluate new and complicated ideas
- Investigate the quality of data in project finance
- Make informed judgements in the absence of complete or consistent data
- Offer creative solutions and insights on complex issues
Communication, ICT, and Numeracy Skills
After completing this course, students should be able to:
- Communicate technical, conceptual and critical information clearly and concisely
- Develop an Excel spreadsheet for discounted cash flow analysis
Autonomy, Accountability and Working with Others
After completing this course, students should be able to:
- Provide and receive peer-feedback
- Collaborate with others from different professional knowledge, educational and cultural background |
| Keywords | Not entered |
Contacts
| Course organiser | Dr Matthew Brander
Tel: (0131 6)51 5547
Email: Matthew.Brander@ed.ac.uk |
Course secretary | Miss Fionna Ogilvie
Tel: (0131 6)51 3028
Email: Fionna.Ogilvie@ed.ac.uk |
|
|
University Homepage