- The origins of project finance and the subsequent development of the PPP framework
- The benefits of using PPP structures vs traditional public procurement
- How Government ensures Value for Money for taxpayers
- How successful has the PPP program been in developed and emerging markets?
- What are the typical structures?
- What are the main sources of debt, equity and other hybrid means of funding projects
- How to determine whether a project should be funded in the domestic or offshore market
- How do lenders assess the risks of a project and what measures do they take to mitigate these?
- What to look for in project and financing documentation
- How the approach to structuring varies by sector
- The importance of cash and how to analyze the cash flow statements for a potential project
- Why projects fail and how various stakeholders should respond
The methodology used is designed to encourage maximum participation by all delegates. The presenter will suggest ideas and theories to the delegates and then encourage them to test out the ideas by the use of discussion, small group work, exercises and feedback. Each day of the seminar will end by delegates completing their own record of what has been learned on the day and considering how the ideas might be transferred back to the workplace.
All professionals involved in infrastructure finance from across government and government agencies, project sponsors, contractors, financial institutions including multilaterals and export credit agencies, as well as consulting and advisory firms.
- Head of Project Finance
- Head of Corporate Finance
- Head of Structured Finance
- Project Manager
- Sales Manager
- Origins of Project Finance and the development of PPP/PFI
- Key differences between project finance and corporate balance sheet financing
- Key differences between public and private infrastructure funding
- What are the key benefits of a limited recourse project finance structure?
- Key Stakeholders in an infrastructure project finance transaction
- Main terminology & acronyms used (PPP, IFI, IPP, etc.)
- What is the state of the infrastructure project finance/ PPP market post-crisis?
- What is the impact of Basel III on infrastructure project finance & PPP?
- Funding structures
- Viability Gap Funding
- Availability vs Market Risk
- Cross sector comparisons
- Refinancing/Mini Perms
Introduction to Infrastructure & PPPs
- What is a PPP?
- Value for Money
- Balance sheet treatment
- Advantages / disadvantages of PPPs in infrastructure
- The tender process
- Regional comparison of PPP programs – lessons to be learned
- Common problems arising in PPP projects
Risk Identification, Analysis & Mitigation
- What are the key risks in infrastructure projects?
- Identification of risk types
- Social & Environmental risk
- Assessment of the impact of risk
- Creation of a risk matrix
- Risk mitigation
- Role of the capital market derivatives in risk mitigation
- Role of insurance to mitigate risk: commercial, financial, political
Sources of Debt & Equity**
- Equity funds
- Developers & Investors
- Private equity
- Institutional Sources
- Key issues for Investors
- Commercial Bank Debt: availability, terms, conditions & key issues for lenders
- Export Credit Agencies
- Grant Funding
- Local market financing
- Monoline Insurance
- Project Bond market
- Islamic funding
- Cashflow models
- Issues to look out for
- DCF, NPV & IRRs
- Criteria & Ratios used by lenders & investors to measure performance
- Project documents: information memoranda, etc.
- Role of financial advisor & other consultants
- Due diligence
- Cashflow & Term Sheet Exercises
- Course participants will be invited to discuss a project cash flow and term sheet to identify key issues
Theme 1: Typical Documentation
- EPC / construction contracts
- Operations & maintenance contracts
- Supply contracts
- Sales/Offtake contracts
- Shareholders’ agreements
- PPP concession agreements
- Loan agreements: typical covenants
- Direct (or Tripartite) Agreements
- Security Agreements
Theme 2: Case Studies
Case Studies from a variety of developed and emerging markets and sectors. Why have some projects succeeded, whereas others have failed? Lessons from each will be identified and noted
Port Project, Hong Kong
Toll Road Project, Singapore
Port Project, Vietnam
Toll Road Project, Indonesia
Toll Road Project, Australia
Various Projects, Korea
Participants will conduct a Credit Committee exercise in teams, whereby each team will present a case for a project currently in the market to be judged by the other teams.
Program Fee: $2950
Fee Covers: Visa, Participant Assessments, Airport pickup, Accommodation with wifi & breakfast, Lunch & Refreshments, Workshop Kit, Program Materials, and International Certificate of Completion & Entertaining Tour.