Syllabus

Title
2018 ExInt III: Elective - Managing and Financing Project Investments in High Risk Countries
Instructors
Assoz.Prof. PD Dr. Jakob Müllner, Dr. Christoph Riedler, MSc (WU)
Contact details
  • Type
    PI
  • Weekly hours
    2
  • Language of instruction
    Englisch
Registration
09/22/21 to 09/29/21
Registration via LPIS
Notes to the course
Subject(s) Master Programs
Dates
Day Date Time Room
Thursday 10/14/21 01:30 PM - 05:00 PM Online-Einheit
Thursday 10/21/21 01:30 PM - 05:00 PM Online-Einheit
Thursday 10/28/21 01:30 PM - 05:00 PM Online-Einheit
Thursday 11/04/21 01:30 PM - 05:00 PM Online-Einheit
Thursday 11/11/21 01:30 PM - 05:00 PM Online-Einheit
Thursday 11/18/21 01:30 PM - 05:00 PM Online-Einheit
Thursday 11/25/21 01:30 PM - 03:30 PM Online-Einheit

Contents

The global market for infrastructure finance is one of the biggest markets in the world with exponential growth rates. The G 20 estimate global demand for infrastructure finance until 2038 at 94 trillion USD, the majority of which will be invested in emerging economies with, sometimes, high risks and weak institutional structures.

The course addresses the challenges emerging in large-scale infrastructure investments in high risk countries. The complexity of megaprojects like the Hamaca oil field (Venezuela), the Chad-Cameroon pipeline or the construction of Hong-Kong Disney Land results in managerial and financial problems that are more pronounced than in traditional corporate investment. Projects are exposed to extensive political, financial and commercial risks. For foreign investors, risk management becomes a key consideration.

In the course, possible strategies for diversifying, transferring and mitigating risk are discussed based on case studies and empirical academic studies. Such strategies include financial strategies (project finance), contractual strategies (hedging, insurance, guarantees and non-financial contracts) as well as classical strategic and managerial considerations (alliances, co-investment, joint-ventures, management fallacies in megaprojects).

Learning outcomes

During the course, students

  • Have acquired theoretical and conceptual knowledge on the nature and particularities of large scale- infrastructure investments.
  • Become acquainted with the market for infrastructure projects, in particular in developing countries.
  • Have a systematic understanding of risk management techniques in large megaprojects.
  • Are able to analyze and implement a variety of interdisciplinary risk management strategies in international infrastructure investment.
  • Become acquainted with a number of successful and unsuccessful cases of infrastructure projects.

Attendance requirements

The elective is a distance learning course that can be concluded entirely from a distance. Coachings will be offered online by the instructor.

Students watch weekly lecture casts on theory and submit week-to-week take-home assignments. In the meantime students work on group projects. This final exam session and the initial course welcome sessions are the only sessions that requires online presence at a predetermined time.

Teaching/learning method(s)

  • The course is designed as an online, modular course that is taught entirely online on learn@wu. Students are expected to complete ALL weekly online learning components:

    - Pre-session mandatory readers
    - Recorded lecture casts (asynchronous)
    - Online assignments and learning extensions (videos & podcasts)
    - Final Exam
    -Group work
     
  • Teaching language is English. Course materials and student papers should be in English.

Assessment

  • 30% Take-home assignments
  • 50% Group projects
  • 20% Online exam

Prerequisites for participation and waiting lists

Please contact masterexint@wu.ac.at for inquiries. The course is open for all international and WU students.

Recommended previous knowledge and skills

The course has no pre-requisites.

Availability of lecturer(s)

Dr. Jakob Müllner
Associate Professor

WU Vienna - Wirtschaftsuniversität Wien
Institute for Export Management
Department of Global Business and Trade
Welthandelsplatz 1 / D1.5 OG, A-1020 Wien
Tel.: +43-1-313 36-4374
Fax: +43-1-313 36-90-4374
jakob.muellner@wu.ac.at
Open office hours: Tue 10-12

Unit details

Unit Date Contents
1 14.10.2021

13:30-17:00

Online Meeting

  • Course Admin
  • Group projects Instructions


Lecture Cast – distance learning - lecture cast can be accessed at any time

  • Introduction to Infrastructure Finance
  • Introduction to Project Finance
  • Why study large infrastructure projects
  • Project finance in theory

Take-home assignments:

Compulsory readers I:
Esty, Chavich, and Sesia (2014) - An Overview of Project Finance and Infrastructure Finance — 2014 Update. Harvard Business School Case Study.

Müllner (2017) - International project finance: review and implications for international finance and international business. Management Review Quarterly, 67(2): 97-133.

Esty, B.C. 1999. Improved Techniques For Valuing Large-Scale Projects. Journal of Project Finance. 5(1) 17-26.

 

2 21.10.2021

 

Lecture Casts can be viewed at any time:

  • Introduction to Infrastructure Finance
  • Introduction to Project Finance
  • Why study large infrastructure projects
  • Project finance in theory
  • Risk management theory
  • Risks in infrastructure finance
  • Risk management framework for infrastructure finance

Take-home assignment:

Read the case Busang: River of Gold. Reflect on the infrastructure project, the players involved and how it relates to the course.

 

3 28.10.2021

Instructor: Jakob Müllner

Lecture Casts:

  • Capital Structure as a risk management tool in project finance
  • Capital structure theory
  • Legal contracts as a risk management tool in project finance
  • Types of contracts in project finance
  • Boundary conditions of contractual risk management

Take-home assignment:

Watch the movie Gold. And try to connect the plot to the course content.

4 04.11.2021

13:30-17:00 Model Coaching Session

Instructor: Christoph Riedler

Agenda:

Team 1:             13:30 -14:15

Team 2:             14:15 -15:00

Team 3:             15:15 -16:00

Team 4:             16:00 – 16:45

5 11.11.2021

Lecture Cast – distance learning - lecture cast can be accessed at any time

  • Instructor: Jakob Müllner

  • Socio-economic risk management strategies and challenges in project finance
  • Socio economic risk management strategies in project finance
  • Managerial challenges in large scale projects
  • Debt-side
  • Equity-side
6 18.11.2021

13:30-17:00 Final Presentations

Students present their project valuations.

Agenda:

Team 1:             13:30 -14:15

Team 2:             14:15 -15:00

Team 3:             15:15 -16:00

Team 4:             16:00 – 16:45

 
7 25.11.2021

13:30-15:30
Online Exam

Last edited: 2021-09-08



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