Assignment Brief:

Read the case: 'Azito, C$$te d'Ivoire' $($Appendix $2).$

The Azito project in C$$te d'Ivoire represents a groundbreaking venture in sub$-$Saharan Africa's infrastructure development, particularly in the power sector. This assignment will explore various aspects of the project, including its financing structure, the regulatory environment, and the challenges faced.

Instructions

Your analysis should demonstrate the application of project finance concepts that you learnt from your class and textbooks.

Proper referencing and citation of sources are essential.

Ensure clarity, coherence, and conciseness in your responses.

The assignment will be graded out of $100$ marks based on the depth of analysis, critical thinking, and the overall quality of presentation.

Question $1$: Project Overview $(15$ marks$)$

Provide a summary of the Azito project, including its significance and distinctive features $(15$ marks$).$

Question $2$: Financing Structure $(35$ marks$)$

$2\mathrm{.}1.$ With the aid of a diagram, describe the financing structure of the Azito project, detailing the sources of funding and the respective amounts. $(20$ marks$)$

$2\mathrm{.}2.$ Analyse the role of the EPC, Fuel Supply and PPA contracts in risk mitigation $(10$ marks$)$

$2\mathrm{.}3.$ Evaluate the impact of the International Development Association's $($IDA$)$ partial risk guarantee on attracting commercial lenders to the project $(5$ marks$).$

Question $3$: Regulatory and Legal Framework $(20$ marks$)$

$3\mathrm{.}1.$ Discuss the historical context of C$$te d'Ivoire's power sector, focusing on the transition from state$-$owned corporations to private concessions. $(15$ marks$)$

$3\mathrm{.}2.$ Examine the legal issues faced during the Azito project negotiations, including the use of project assets for collateral, international arbitration availability, and cash$-$flow waterfall structuring. $(5$ marks$)$

Question $4$: Country and Economic Risk $(20$ marks$)$

$4\mathrm{.}1.$ Assess the country risk associated with C$$te d'lvoire, considering its political and economic stability. $(10$ marks$)$

$4\mathrm{.}2.$ Explore the impact of C$$te d'Ivoire's economic policies, growth, and debt restructuring on the confidence of project sponsors and lenders. $(10$ marks$)$

Question $5$: Success Factors and Challenges $(10$ marks$)$