Skip to content

Petrozuata Case Study Project Finance Books

This page contains six sections:  

1) Project Finance Overviews and Theoretical Articles

2) Structuring Projects

3) Valuing Projects

4) Managing Project Risk

5) Financing Projects

6) Negotiating Projects and Legal Issues

Note: The icons below link to either a full text article in a HOLLIS e-journal (available to Harvard University users only), or to the Harvard Library Online Catalog record which shows which library the item is located and indicates whether or not the item is available. Click on icon to access Harvard subscribed resources.


1) Project Finance Overviews and Theoretical Articles:

Brealey, R.A., I. A. Cooper, and M.A. Habib, 1996, Using Project Finance to Fund Infrastructure Investments, Journal of Applied Corporate Finance 9:3, pp. 25-38.

Buckley, A., 1996, Project Finance, appears in International Capital Budgeting, Chapter 14, pp. 335-363, Prentice Hall.

Chemmanur, T.J., and K. John, 1996, Optimal Incorporation, Structure of Debt Contracts, and Limited-Recourse Project Financing, Journal of Financial Intermediation 5: 372-408.

Clifford Chance, 1991, Project Finance, London, U.K. (February). 

Esty, B.C., and I. Christov, 2002, Recent Trends in Project Finance:A 5-Year Perspective, Project Finance International, Special 10th Anniversary Issue, Issue #249, September 18, pp. 74-82.

Esty, B.C., 2002, Returns on Project-Financed Investments:  Evolution and Managerial Implications, Journal of Applied Corporate Finance, Spring, pp. 71-86.

Fruhan, W. E., 1979, Freeport Minerals Company, appears in Financial Strategy, Chapter 5, Irwin (Homewood, Illinois). 

Hoffman, Scott L., 1989, A Practical Guide to Transactional Project Finance:  Basic Concepts, Risk Identification, and Contractual Considerations, The Business Lawyer, Vol. 45, No. 1, pp. 181-232.

John, T.A., 1991, Optimality of Project Financing: Theory and Empirical Implications in Finance and Accounting, Review of Quantitative Finance and Accounting, 1:51-74.

Kensinger, J.W., and J.D. Martin, 1988, Project Finance: Raising Money the Old-Fashioned Way, Journal of Applied Corporate Finance, Fall, pp. 69-81.

Scheinkestel, N.L., 1997, The Debt-Equity Conflict: Where does Project Financing Fit? Journal of Banking and Finance Law and Practice. Vol. 8 (2), pp. 103-124.

Shah, S., and Thakor, A. V., 1987, Optimal Capital Structure and Project Financing, Journal of Economic Theory, 42: 207-243.

Smith, R. C. and I. Walter, Global Financial Services: Strategies for Building Competitive Strengths, in International Commercial and Investment Banking (New York: Harper Business, 1990), chapter 9, pp. 214-219.

Worenklein, J.J., 2003, The Global Crises in Power and Infrastructure:  Lessons Learned and New Directions, The Journal of Structured and Project Finance, Spring, Vol. 9, No. 1, pp. 7-11.

Wynant, L., 1980, Essential Elements of Project Finance, Harvard Business Review, May-June, pp. 165-173.

Return to Top


2) Structuring Projects:

Auerback, Raymond M., 1993, The International Lawyer, Vol. 27, No. 3, pp. 303-316. 

Buehrer, T.S., J.J. Emery, M.T. Spence, Jr., and L.T. Wells, Jr., 2000, Occasional Paper No. 14, International Finance Corporation-Multilateral Investment Guarantee Agency, Washington, D.C.

Forrester, J.P., and B.S. Neuhausen, 2003, Is my SPE a VIE Under FIN46 and, if so, so what? Journal of Structured and Project Finance, Vol. 9, No. 3 (Fall), pp. 24-28.

Fowkes, D., Kahn, N., and D. Armstrong, 2000, Leasing in Project Finance, Journal of Project Finance, Spring, pp. 21-31.

Klein, Michael, 1998, Bidding for Concessions--The Impact of Contract Design, Viewpoint Note No. 158, The World Bank Group, November.

Klein, Michael, Jae So, and Ben Shin, 1996, Transaction Costs in Private Infrastructure Projects--Are They Too High?, Viewpoint Note No. 95, The World Bank Group, October.

Lyonnet du Moutier, Michel, 2010, Financing the Eiffel Tower:  Project Finance and Agency Theory, Journal of Applied Finance, Issue #1, pp. 127-141.

McPhail, Kathryn, and Aidan Davy, 1998, Integrating Social Concerns into Private Sector Projects, World Bank Discussion Paper No. 384, World Bank, Washington, DC.

Penrose, James F., 1996, Special-Purpose Entities in Project Finance Transactions, Journal of Project Finance, Fall, PP. 58-66.

Pfeffermann, Guy, 2000, Paths Out of Poverty:  The Role of Private Enterprise in Developing Countries, International Finance Corporation (IFC), Washington, DC.

Rosenberg, William G., Dwight C. Alpern, and Michael R. Walter, 2004, Deploying IGCC in This Decade With 3Party Covenant Financing, (a study on the economics of Integrated Gasification Combined Cycle (IGCC) coal generation technology), Volumes I and II, July.

Sahlman, W.A., 1988, Aspects of Financial Contracting in Venture Capital, Journal of Applied Corporate Finance, Summer, Vol. 1, No. 2, pp. 23-36.

Scheinkestel, Nora L., 1997, The Debt-Equity Conflict:  Where Does Project Financing Fit? Journal of Banking and Finance Law and Practice, Vol. 8, pp. 103-124.

Statman, Meir, and David Caldwell, 1987, Applying Behavioral Finance to Capital Budgeting:  Project Terminations, Financial Management 16, No. 4, Winter, pp. 7-15.

Statman, Meir, and James F. Sepe, 1989, Project Termination Announcements and the Market Value of the Firm, Financial Management 18, No. 4, Winter, pp. 74-81.

Tinsley, Richard, 1985,  Project Finance Supports and Structuring, Finance for the Minerals Industry, Society for Mining Engineers, C.R. Tinsley et al. (Eds), New York, Paper 11.4, pp. 549-558.


Return to Top


3) Valuing Projects:

Ang, J.S., and T. Lai, 1989, A Simple Rule for Multi-national Capital Budgeting, Global Finance Journal 1, pp. 71-75.

Balcombe, K.G., and L.E.D. Smith, 1999, Refining the Use of Monte Carlo Techniques for Risk Analysis in Project Planning, The Journal of Development Studies, Vol. 26, No. 2, pp. 113-135.

Borgonovo, E., S. Gatti, and L. Peccati, 2010, What Drives Value Creation in Investment Projects?  An Application of Sensitivity Analysis to Project Finance Transactions, European Journal of Operational Research, Summer, Vol. 205, pp. 227-236.

Bowe, Michael, and Ding Lun Lee, 2004, Project Evaluation in the Presence of Multiple Embedded Real Options: Evidence From the Taiwan High-Speed Rail Project, Journal of Asian Economics, Vol. 15, Issue 1, February, pp. 71-98.

Chaveesuk, R., and A.E. Smith, 2003, Economic Valuation of Capital Projects Using Neural Network Metamodels, The Engineering Economist, Vol. 48, No. 1, pp. 1-30.

Caselli, Stefano, Stefano Gatti, and Antonio Marciante, 2009, EPricing Final Indemnification Payments to Private Sponsors in Project-Financed Public-Private Partnerships:  An Application of Real Options Valuation, Journal of Applied Corporate Finance, Summer, pp. 80-91.

Flyvbjerg, B., M.K. Holm, and S.L. Buhl, 2002, Underestimating Costs in Public Works Projects: Error or Lie, Journal of the American Planning Association, Vol. 68, No. 3, Summer, pp. 279-295.

Esty, B.C., 1999, Improving Techniques for Valuing Large-Scale Projects, Journal of Project Finance, Spring,Vol. 5, Issue 1.

Fowkes, D., N. Kahn, and D. Armstrong, 2000, Leasing in Project Financing, Journal of Project Finance, Spring, pp. 21-31.

Imai, J., and M. Nakajima, 2001, A Real Option Analysis of an Oil Refinery Project, Financial Practice and Education, Fall/Winter,  pp. 78-91.

Karmokolias, Yannis, 1996, Cost Benefit Analysis of Private Sector Environmental Investments:  A Case Study of the Kunda Cement Factory, International Finance Corporation (IFC) Discussion Paper #30, Washington, DC, June.

Kopelic, S.A., and D. S. Fogel, 1996, Project and Investment Valuation with Regards to Emerging Markets, Katz Graduate School of Business, University of Pittsburgh, case #298-001, available through Case Centre.

Lee, Sharon Y., and Michael E. Venezia, 2000, A Primer on Bardy Bonds, SalomonSmithBarney, Fixed Income Research report, 3/9/00.

Lessard, Donald R., 1979, Evaluating Foreign Projects--An Adjusted Present Value Approach, MIT Working Paper #1062-79, April.

Lovallo, Dan, and Daniel Kahneman, 2003, Delusions of Success:  How Optimism Undermines Executives' Decisions,Harvard Business Review, July.

Mason, S.P., and C.Y. Baldwin, 1988, Evaluation of Government Subsidies to Large-Scale Energy Projects, Advances in Futures and Options Research 3, pp. 169-181.

Mason, S.P., and R.C. Merton, 1985, The Role of Contingent Claims Analysis in Corporate Finance, (see the application of contingent claims analysis to a pipeline project in the appendix) in Recent Advances in Corporate Finance, E.I. Altman and M.G. Subrahmanyam, eds., Richard D. Irwin (Homewood, IL). 

Merton, R.C., and Z. Bodie, 1992, On the Management of Financial Guarantees, Financial Management, Winter, pp. 87-109.

Mody, Ashoka, and Dilip Patro, 1996, Methods of Loan Guarantee Valuation and Accounting, The World Bank, research paper, November.

Rose, S., 1998, Valuation of Interacting Real Options in a Toll Road Infrastructure Project, Quarterly Review of Economics and Finance 38, 711-723.

Savvides, S., 1994, Risk Analysis in Investment Appraisal, Project Appraisal Journal, Vol. 9, No. 1, March, pp. 3-18.

Smit, H.T.J., 1997, Investment Analysis of Offshore Concessions in the Netherlands, Financial Management 26, Summer, pp. 5-17.

Smit, Han T.J., and Lenos Trigeorgis, 2009, Valuing INfrastructure Investment:  An Option Games Approach, California Management Review 51:2, Winter, pp. 5-17.

Triantis, Alexander, 2000, Valuation of Option Features in Project Finance, World Bank Institute, (Powerpoint presentation), June.

Wachs, M., 1990, Ethics and Advocacy in Forecasting for Public Policy, Business & Professional Ethics Journal, Vol. 9, Nos. 1 & 2, Spring/Summer, pp. 141-157.

Wells, L. T., 1975, Social Cost/Benefit Analysis for MNCs, Harvard Business Review, March/April, pp. 40-154.

White, D.E., R.S. Poats, and M.J. Borchi, 2000, The Role of Volatility Value in Power Plant Financing, Journal of Project Finance, Summer, pp. 23-31.

Wooldridge, S.C, M.J. Garvin, Y.J. Cheah, and J.B. Miller, 2002, Valuing Flexibility in Private Toll Road Development:  Analysis of the Dulles Greenway, The Journal of Project and Structured Finance, Winter, pp. 25-36.

Return to Top


4) Managing Project Risk:

Bain, Robert, 2009, Toll Road Traffic & Revenue Forecasts:  An Interpreter's Guide.

Bain, Robert, and Jan Willem Plantagie, 2007, The Anatomy of Construction Risk:  Lessons From a Millennium of PPP Experience, Infrastructure Finance, Standard & Poor's Research Report, April 5.

Bain, R., and L. Polakovic, 2005, Traffic Forecasting Risk Study Update 2005:  Through Ramp-up and Beyond, Standard & Poor's Research Report--Corporates, August 25.

Bain, R., and M. Wilkins, 2002, Road Risk, ProjectFinance Transport Report, September, pp. 2-5.

Banerjee, S., and T. Noe, 2002, Exotics and Electrons: Electric Power Crises and Financial Risk Management, Tulane University working paper. January.

Beale, C., M. Chatain, N. Fox, S. Bell, J. Berner, R. Preminger, and J. Prins, 2002, Credit Attributes of Project Finance, Journal of Structured and Project Finance, Fall, Vol. 8, No. 3, pp. 5-9.

Bonetti, Veronica, Stefano Caselli, and Stefano Gatti, 2010, Offtaking Agreements and  How They Impact the Cost of Funding for Project Finance Deals:  A Clinical Case Study of the Quezon Power Ltd. Co., Review of Financial Economics, Vol. 19, Issue 2, April, pp. 60-71.

Budd, Nicholas, 1993, Making Sense of Political Risk Insurance Policies, International Financial Law Review, June, pp. 29-32.

Dailami, M., and R. Hauswald, 2001, Credit Spread Determinants and Interlocking Contracts:  A Clinical Study of the Ras Gas Project, University of Maryland working paper, November.

Dell, J.C., W. Streeter, et al., 2004, Rating Approach to Project Finance, Fitch Ratings Criteria Report, August 12.

Dymond, C., and J. Schoenblum, 2002, Targeted Risk Capital, Journal of Structured and Project Finance, Vol. 8, No. 2 (Summer), pp. 32-39.

Equator Principles:  A voluntary set of guidelines developed by ten leading banks for managing social and environmental issues related to the financing of development projects.  To download a copy of the principles (pdf file), click here.

Estache, A., and J. Strong, 2000, The Rise, the Fall, and...the Emerging Recovery of Project Finance in Transport, World Bank Institute (Washington, DC), May.

Esty, B.C., 1999, Petrozuata: A Case Study on the Effective Use of Project Finance, 1999, Journal of Applied Corporate Finance, Vol. 12, No. 3, Fall, pp. 26-42.

Fortin, R. Jay, 1995, Defining Force Majeure, Project and Trade Finance, Euromoney Publication, January.

Froot, K.A., D.S. Scharfstein, and J.C. Stein, 1994, A Framework for Risk Management, Harvard Business Review, November/December, pp. 91-102.

Gatti, Stefano, Alvaro Rigamonti, Francesco Saita, and Mauro Senati, 2006, Measuring Value-at-Risk in Project Finance Transactions, European Financial Management, Volume 13, No. 1.

Gray, Philip, and Timothy Irwin, 2003, Exchange Rate Risk, Public Policy for Private Infrastructure, The World Bank Group, Note #262, June.

Gray, Philip, and Timothy Irwin, 2003, Exchange Rate Risk:  Allocating Exchange Rate Risk in Private Infrastructure Projects, Public Policy for Private Infrastructure, The World Bank Group, Note #266, December.

Headley, J.S., and P. Tufano, 1994, Why Manage Risk?, Harvard Business School case study #9-294-107.

International Finance Corporation, 1999, Mitigating Major Project Risks, Chapter 4 in Project Finance in Developing Countries, Lessons from Experience #7 (Washington, DC). 

International Finance Corporation (IFC, a member of the World Bank Group), Policy on Environmental Assessment (OP 4.01, October 1998. Revised April 2013).

International Finance Corporation (IFC, a member of the World Bank Group), Policy on Indigenous Peoples (OP 4.20, September 1991. Revised April 2013). An Operational Directive from the World Bank Operational Manual.

Kaplan, M., and K. de Bartolom�, 1996, Risk Allocation, Journal of Project Finance, Vol. 2, No. 2 (Summer), pp. 19-28.

Klompjan, R., and M. J.R. Wouters, 2002, Default Risk in Project Finance, Journal of Structured and Project Finance, Fall, Vol. 8, No. 3, pp. 10-21.

Levey, D.H., and V.J.Truglia, 2002, Revised Country Ceiling Policy, Moody's Sourcebook:  Project & Infrastructure Finance, (original article published June 2001), December, pp. xci-xcii.

Marshella, Tom, 2001, Three R's:  Risk, Return, Rating, Project Finance Magazine, Latin America Report, June, pp. 5-8.

Marti, Stephan, and Lowell Keith, 2000, Cash Flow Volatility as Opportunity:  Adding Sophisticated Insurance Capital to the Project Finance Mix, Journal of Project Finance, Fall, pp. 9-13.

Matsukawa, Tomoko, Robert Sheppard, and Joseph Wright, 2003, Foreign Exchange Risk Mitigation for Power and Water Projects in Developing Countries, The World Bank Group, Energy and Mining Sector Board Discussion Paper #9, December.

Miller, R., and D. Lessard, 2000, Understanding and Managing Risks in Large Engineering Projects, International Journal of Project Management, 19, no. 8, pp. 437-443.

Mizrachi, Kfir, 2006, Force Majeure in Projects:  A Comparative and Practical Analysis of Risk Allocation, The Journal of Structured Finance, Summer, pp. 76-97.

Moody's Investors Service, 2010, Default and Recovery Rates for Project Finance Bank Loans, 1983-2008, Global Project Finance, Report #123903 (October 20, 2010).

Moody's Corporation, 2000, Heightened Construction Risk for Complex Projects: Welcome to the Billion Dollar Club!,  February, in Moody's Project Finance Sourcebook (October 2000, pp. 146-154).

Moran, Theodore H., 1973, Transnational Strategies of Protection and Defense by Multinational Corporations: Spreading the Risk and Raising the Cost for Nationalization in Natural Resources, International Organization, Vol. 27, No. 3, Spring, pp. 273-287.

Penrose, J., and P. Rigby, 2000, Debt Rating Criteria for Energy, Industrial, and Infrastructure Project Finance, Standard & Poor's: 2000-2001 Infrastructure Finance:  Criteria and Commentary, October, pp. 15-65.

Penrose, J., and P. Rigby, 2002, Project Finance Summary Debt Rating Criteria, Standard & Poor's: 2002-2003 Project and Infrastructure Finance Review:  Criteria and Commentary, October, pp. 19-32.

Rasmussen, Karen, 1999, Mitigating Currency Convertibility Risks in High-Risk Countries,  Viewpoint Note No. 180, The World Bank Group, April.

Rigby, Peter, 2004, When Projects Fail:  10 Years of Rated PRoject Finance Debt at Standard & Poor's, Standard & Poor's Credit Research, July 21, 2004.

Rigby, P.N., 1999, Merchant Power:  Project Finance Criteria, Standard & Poor's: 1999 Infrastructure Finance Criteria and Commentary, October, pp. 24-39.

Ruster, Jeff, 1996, Mitigating Commercial Risks in Project Finance, Viewpoint Note No. 69, The World Bank Group, Public Policy for the Private Sector, February.

Ruster, Jeff, 1997, A Retrospective on the Mexican Toll Road Program (1989-94), The World Bank Group, Public Policy for the Private Sector,  Note No. 125, September.

Sorge, Marco, and Blaise Gadanecz, 2004, The Term Structure of Credit Spreads in Project Finance, Bank for International Settlements (BIS) Working Paper No. 159, August.

Standard & Poor's, Infrastructure Finance:  Traffic Forecasting Risk:  Study Update 2004 (October 19, 2004, by Robert Bain and Jan Willem Plantagie).

Standard & Poor's, Infrastructure Finance:  Traffic Risk in Start-up Toll Facilities (September 2002, by Robert Bain and Michael Watkins); and Traffic Forecasting Risk:  Study Update 2003 (November 6, 2003, by Robert Bain and Jan Willem Plantagie).

Streeter, W., J. Zeppieri, and J. Celio, 1998, Rating Public Sector Infrastructure Projects in Emerging Markets, Fitch IBCA Special Report (Criteria Reports), 10/16/98.

Streeter, W., G. Cherian, and S. Trommer, 2003, Redefining Toll Roads:  An American Challenge, FitchRatings Special Report, 3/4/03.

Tinsley, Richard, 1991,  Structuring Risk in Project Finance: The Case of the Kutubu Petroleum Development, Applied Finance for Natural Resources, United Nations, Proceedings of the Interregional Seminar,  UN Dept. of Technical Cooperation and Economic and Social Commission for Asia and the Pacific, Bangkok, Thailand, 9-14 December 1991, Paper 4.3, pp. 163-180

Walsh, R., Pacific Rim Collateral Security Laws:  What Happens When the Project Goes Wrong?, Stanford Journal of Law, Business and Finance, 115 (1999), 115-147.

Wells, L.T., and E. Gleason, 1995, Is Foreign Infrastructure Investment Still Risky?, Harvard Business Review, Reprint 95511, September/October, pp. 1-12.

West, G., 1996, Managing Project Political Risk: The Role of Investment Insurance, Journal of Project Finance, Winter, pp. 5-11.

World Bank, 1998, The World Bank Guarantee:  Catalyst for Private Capital Flows, Project Finance and Guarantees Department.

Zenner, Marc, 2001, How Risk Management Creates Shareholder Value...(by lowering the cost of debt and equity and increasing expected cash flows), Salomon Smith Barney, Financial Strategy Group, 2/28/01.

Zurita, Gersan R., C.Y.Chang, R. Biang, M. Hermans, and L. Monnier, 2005, Fitch's Rating Approach to Mining Projects, FitchRatings Project Finance Criteria Report, 1/13/05.


Return to Top


5) Financing Projects:

Bavaria, S.M., 2002, Syndicated Loans--A Rated Market, at Last!, Standard & Poor's Corporation, 2/12/02.

Bavaria, S.M., and S. Miller, 2003, A Guide to the U.S. Loan Market, ("a detailed primer on the syndicated loan market"), Standard & Poor's Corporation, October.

Borgonovo, E., and S. Gatti, 2013, Risk Analysis With Contractual Default.  Does Covenant Breach Matter?, European Journal of Operations Research.

Castle, G.R., 1975, Project Financing-Guidelines for the Commercial Banker, Journal of Commercial Bank Lending 57, April, pp. 14-30.

Castle, 1986, North Sea Score Card, Society of Petroleum Engineers (SPEE), Report #15358, October (reviews the performance of North Sea projects).

Corielli, F., and S. Gatti, and A. Steffanoni, 2010, Risk Shifting Through Nonfinancial Contracts:  Effects on Loan Spreads and Capital Structure of Project Finance Deals, Journal of Money, Credit and Banking, Vol. 42, No. 7, October, pp. 1295-1320.

Dailami, M., and R. Hauswald, 2003, The Emerging Project Bond Market:  Covenant Provisions and Credit Spreads, World Bank Policy Research Working Paper #3095, July.

Devapriya, K.A.K, and H.W. Alfen, 2003, Role of Institutional Arrangements in Financing Project Companies in Asia, working paper, Bauhaus-Universit�t Weimar, October 2.

Ehrhardt, David, and Timothy Irwin, 2004, Avoiding Customer and Taxpayer Bailouts in Private Infrastructure Projects:  Policy Toward Leverage, Risk Allocation, and Bankruptcy, World Bank Policy Research Working Paper #3274, April.

Esty, B.C., 2001, Structuring Loan Syndicates:  A Case Study of the Hong Kong Disneyland Project Loan, Journal of Applied Corporate Finance, Volume 14, No. 3, pp. 80-95.

Esty, B.C., and W.L. Megginson, 2003, Creditor Rights, Enforcement, and Debt Ownership Structure:  Evidence From the Global Syndicated Loan Market,Journal of Financial and Quantitative Analysis, Vol. 38, No. 1, pp. 37-59.

Fishbein, Gregory, and Suman Babar, 1996, Private Financing of  Toll Roads, RMC Discussion Paper Series 117, The World Bank, September (Despite the cover page which says Fisher, the first author's name is Fishbein).

Forrester, J. Paul, 1995, The Role of Commercial Banks in Project Finance, Journal of Project Finance, Summer, pp. 53-58.

Gilliland, James S., D.C. Champeau, J.Pitkanen, and D. McGirt, 2003, U.S. Sports Facility Finance--Yesterday, Today, and Tomorrow, FitchRatings Project Finance Special Report, 1/6/03.

Hainz, C., and S. Kleimeier, 2003, Political Risk in Syndicated Lending:  Theory and Empirical Evidence Regarding the Use of Project Finance, Limburg Institute of Financial Economics, LIFE Working Paper #03-014, June 20.

Harvin, D., J.C. Dell, L. Monnier, and C.Y. Chang, 2003, Distressed Project Debt:  Strategies for Value, Fitch Ratings, Global Project Finance Special Report, 11/14/03.

Harvin, D., M. Hermans, M. McDermott, and L. Monnier, 2006, Tailored Debt Structures: A Better Fit for Uncertain Cash Flows, Fitch Ratings, Project Finance Special Report, 3/22/06.

INSOL International (International Federation of Insolvency Professionals), Statement of Principles for a Global Approach to Multi-Creditor Workouts, October 2000.

Kinloch, Andrew, 2004, Asia Pacific Project Finance:  Recent Credit Loss Experience and Lessons to Be Learned, Journal of Structured and Project Finance, Spring, Volume 10, No. 1, pp. 12-18.

Kleimeier, S., and Megginson, W.L., 2000, Are Project Finance Loans Different from Other Syndicated Credits?, Journal of Applied Corporate Finance, Spring.

Kunkle, J.W., J.L. Soltz, L. Monnier, and C. Joassin, 2002, Layer It On--The Essentials of Rating Project Subordinated Debt, Fitch Ratings Criteria Report, 9/9/02.

McKeon, P., 1999, High-Yield Debt: Broadening the Scope of Project Finance, Journal of Project Finance, Fall, pp. 62-69.

Orgeldinger, J�rg, 2006, Basel II and Project Finance--The Development of a Basel II-Conforming Rating Model, The Journal of Structured Finance, Winter, Vol. 11, No. 4, pp. 84-95.

Parra, R.J., and M.F.K. Khan, 2001, Layered Finance, Journal of Structured and Project Finance, Vol. 7, No. 3 (Fall), pp. 49-60.

Phillips, P. D., J.C. Groth, and R.M. Richards 1979, Financing the Alaskan Project: The Experience at Sohio, Financial Management, pp. 7-16.

Simpson, P., and N. Avery, 1995, The Role of Capital Markets in Project Financings, Journal of Project Finance, Spring, pp. 43-48.

The World Bank (Washington, DC), Principles and Guidelines for Effective Insolvency and Creditor Rights Systems, April 2001.


Return to Top


6) Negotiating Projects and Legal Issues:

Banani, Dinesh D., 2003, International Arbitration and Project Finance in Developing Countries:  Blurring the Public/Private Distinction, Boston College International and Comparative Law Review, Vol. 26, No. 2, pp. 355-384.

Kolo, A. and T. W. W�lde, 2000, Renegotiation and Contract Adaptation in International Investment Projects, Journal of World Investment, Vol. 5, pp. 5-57.

Riley, Hannah C., and James K. Sebenius, 1995, Stakeholder Negotiations Over Third World Natural Resource Projects, Cultural Survival Quarterly, Vol. 19, Issue 3, pp. 39-43.

Salacuse, Jeswald W., 2001, Renegotiating International Project Agreements, Fordham International Law Journal, Vol. 24, April, pp. 1319-1370.

Salter, M.S., and S. Hall, 1994, Block 16:  Conoco's "Green" Oil Strategy (A, B, C, & D), Harvard Business School Cases #394-001, #394-005, #394-006, and #394-007.  Examines Conoco's negotiations with the Ecuadorian government in the development of a $600 million oil field project.

Sebenius, James K., 2006, Negotiation Design for Large, Multistakeholder Projects, Negotiation--Decision Making and Communication Strategies That Deliver Results, Harvard Business School Publishing Newsletter, Note N0604B April.

Sebenius, J.K., and H.C. Riley, 1999, Case Brief: Stone Container in Costa Rica (A & B), Harvard Business School Cases #800-137.

Sebenius, J.K., and H.C. Riley, 1997, Stone Container in Costa Rica (A), Harvard Business School Cases #897-172.

Sebenius, J.K., and H.C. Riley, 1997, Stone Container in Honduras (B), Harvard Business School Case #897-173.

Wheeler, M., 2001, North East Solid Waste Committee--NESWC (A, B, & C), Harvard Business School Cases #801-067, #801-068, and #Draft.  Negotiations surrounding the public-private partnership for the construction and restructuring of a $200 million waste disposal system.

Winter, Jeremy, and Grant Hanessian, 2004, English and New York Law Compared, Project Finance International, Issue #280, pp. 54-58, 1/8/04.

Return to Top


Case | HBS Case Collection | December 2017 (Revised March 2018)

Bega Cheese: Bidding to Bring Vegemite Back Home

Benjamin C. Esty and Lauren G. Pickle

In January 2017, the leadership team of Bega Cheese—the Australian dairy company—was considering a bid for Mondelēz International’s Australia and New Zealand (ANZ) grocery business, which included several leading consumer brands such as Vegemite, the iconic Australian spread. The team must decide whether to bid for the division and, if so, how much to offer and how to finance the all-cash bid. Making these decisions was difficult because this would be Bega’s largest acquisition ever and it would extend the firm outside of its core dairy business. In addition to the valuation and financing issues, the leadership team must decide whether shifting from the firm's current B2B business model (manufacturing and processing dairy products) to a more B2C business model (a producer of branded consumer foods) made sense strategically.

Keywords: Mergers & Acquisitions; valuation; value drivers; value creation; discounted cash flow (DCF); dairy industry; corporate scope; diversification; consumer goods; iconic brands; Australia; corporate finance; capital structure; bidding strategy; cross border; financing; Mergers and Acquisitions; Valuation; Value Creation; Business Divisions; Capital Structure; Food; Bids and Bidding; Consumer Products Industry; Food and Beverage Industry; Australia; United States;