Review the Project Finance for Autopistas del Centro case and provide a written answer to the following questions Assess the situation of the project until mid 2009 Make sure to discuss the pros and cons of the project at initiation in 2004, the project returns in the initial business plan and the effect of the revised business plan on the project's profitability Note that calculations are not required for this question, instead the case information in text, tables and exhibits should be analyzed and discussed What are the companies options to make the project viable in mid 2009 When answering this question consider the new capital injections by shareholders in case the financial institutions do not withdraw their financing Assess the possible sale as discussed by the AC Board of Directors on May 15, 2009 and consider how you would negotiate a possible price at which to sell the project to a new operator When answering this question, consider the price required by current shareholders Also consider the price the new operator would be willing to pay under the possibilities for creating value in the company as outlined by Martnez Clarification to the case text The notes provided on page 117 of the case are not correctly numbered within the text Note 1 of page 117 refers to Table 2 Expropriations2 Note 2 refers to Table 3 VAT Credit3 Note 3 refers to Table 3 Total Note 5 refers to the text following Table 6 on page 115, i e As of the second year of operation (2008) the DSCR has to be over 1 1 Note 6 refers to the text following Table 6 on page 115, i e and the return due to the shareholders (the IRR of the shareholders' FCF) was 8 09 percent 2

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Review the Project Finance for Autopistas del Centro case and provide a written answer to the following questions: Assess the situation of the project until

Review the Project Finance for Autopistas del Centro case and provide a written answer to the following questions:

Assess the situation of the project until mid-2009. Make sure to discuss the pros and cons of the project at initiation in 2004, the project returns in the initial business plan and the effect of the revised business plan on the project's profitability. Note that calculations are not required for this question, instead the case information in text, tables and exhibits should be analyzed and discussed.
What are the companies options to make the project viable in mid-2009? When answering this question consider the new capital injections by shareholders in case the financial institutions do not withdraw their financing.
Assess the possible sale as discussed by the AC Board of Directors on May 15, 2009 and consider how you would negotiate a possible price at which to sell the project to a new operator. When answering this question, consider the price required by current shareholders. Also consider the price the new operator would be willing to pay under the possibilities for creating value in the company as outlined by Martnez.

Clarification to the case text: The notes provided on page 117 of the case are not correctly numbered within the text. Note 1 of page 117 refers to Table 2 "Expropriations2". Note 2 refers to Table 3 "VAT Credit3". Note 3 refers to Table 3 "Total". Note 5 refers to the text following Table 6 on page 115, i.e. "As of the second year of operation (2008) the DSCR has to be over 1.1". Note 6 refers to the text following Table 6 on page 115, i.e. "... and the return due to the shareholders (the IRR of the shareholders' FCF) was 8.09 percent.2".