Financing And Investing In Infrastructure Coursera Quiz Answers May 2026
Q4: In a non-recourse project finance deal, if the SPV defaults on its loan, the lender can:
Answer: C) Take control of the project’s assets and cash flows, but not the sponsors' other assets.
Q5: Calculate the simplest Debt Service Coverage Ratio (DSCR). If an infrastructure project has Net Operating Income (NOI) of $150M and annual debt payments (principal + interest) of $100M, what is the DSCR?
Answer: 1.5x
Q6: In the "waterfall" payment structure of project finance, who gets paid FIRST?
Answer: C) Operations & Maintenance (O&M) contractors. Q4: In a non-recourse project finance deal, if
Q7: Which contract type removes demand risk (traffic/volume risk) from the private concessionaire?
Answer: C) Availability payment contract.
Q8: A "Power Purchase Agreement" (PPA) is crucial for a renewable energy project because it:
Answer: A) Guarantees a buyer for the electricity at a fixed price for a long term.
Q9: Who typically bears construction risk in a PPP? Answer: C) Take control of the project’s assets
Answer: C) The project company.
Scenario: You are analyzing a toll road PPP. The government will pay no availability fee; the concessionaire earns revenue only from tolls. Traffic is forecast at 10,000 vehicles/day. Construction is 3 years. The DSCR covenant is 1.3x.
Q15: If actual traffic drops to 6,000 vehicles/day due to a new rail line, what is the most likely immediate outcome?
Answer: C) The project enters a cash trap.
Q16: To salvage the project, the sponsors propose a "toll increase." Who typically has the right to approve this? Q5: Calculate the simplest Debt Service Coverage Ratio
Answer: C) The government.
Q7: In a "Availability Payment" PPP model (e.g., a hospital or school), the private partner gets paid based on:
Answer: The asset being ready and available for use according to specified standards Rationale: Availability payments are used for social infrastructure where you can't charge users per use. The government pays a monthly fee if the asset works properly.
Q8: What is a "Take-or-Pay" contract?
Answer: An agreement where the buyer pays a fixed price regardless of whether they take the product Rationale: Common in power plants (PPAs). The utility pays for the electricity even if they don't need it right now, ensuring revenue certainty for the lender.
Q9: Which party typically bears the "demand risk" in a toll road PPP?
Answer: The equity investors (via the concessionaire) Rationale: If traffic is lower than projected, the private partner loses money. (Unless the government offers Minimum Traffic Guarantees, which is rare).