Securing Capital: Project Finance in PPPs Training Course

Introduction

Project finance is the specialized method of funding large-scale infrastructure and industrial projects, characterized by its non-recourse or limited-recourse nature, where debt and equity are primarily repaid from the project's cash flows rather than the balance sheet of the project sponsors. In the context of Public-Private Partnerships (PPPs), mastering project finance is absolutely critical, as it enables governments to leverage private capital for public infrastructure without incurring direct sovereign debt, while providing private investors with structured returns. The intricate interplay of commercial, legal, and financial agreements in project finance demands a sophisticated understanding to ensure bankability and mitigate complex risks.

This intensive training course is meticulously designed to equip public officials, private sector developers, financial institutions, and legal professionals with a comprehensive and practical understanding of project finance principles and their application in Public-Private Partnerships. From dissecting the core concepts of non-recourse financing and risk allocation to developing robust financial models, structuring debt and equity, navigating the financial close process, and managing post-completion finance, you will gain the expertise to successfully fund and deliver complex PPP projects. This empowers you to unlock significant private investment, optimize capital structures, and strategically contribute to sustainable infrastructure development.

Target Audience

  • Project Finance Professionals from commercial banks, investment funds, and DFIs.
  • Private Sector Project Developers and Sponsors.
  • PPP Unit Staff and Government Officials involved in project funding.
  • Financial Advisors and Consultants specializing in infrastructure.
  • Legal Professionals drafting finance documentation for PPPs.
  • Investment Analysts and Portfolio Managers.
  • Corporate Finance Managers in companies pursuing PPPs.
  • Anyone seeking in-depth expertise in the financial aspects of PPP projects.

Duration: 10 days

Course Objectives

Upon completion of this training course, participants will be able to:

  • Understand the fundamental concepts and principles of project finance in the context of PPPs.
  • Grasp the distinctions between project finance and corporate finance.
  • Analyze the key phases of a project finance transaction from inception to financial close.
  • Comprehend the roles and motivations of various project finance participants (sponsors, lenders, government).
  • Evaluate different debt and equity structuring options for PPP projects.
  • Develop practical skills in assessing project bankability and financial viability.
  • Navigate the complexities of risk allocation from a financier's perspective.
  • Formulate robust financial models for project finance transactions.
  • Understand the legal documentation and security packages in project finance.
  • Champion best practices in managing the financial close process.
  • Recognize the importance of credit enhancement and government support mechanisms.
  • Appreciate the role of financial advisors and legal counsel in project finance.
  • Distinguish between various sources of funding (commercial banks, ECAs, DFIs, capital markets).
  • Understand post-completion financial management and refinancing.
  • Strategize for optimizing capital structures to achieve project objectives.

Course Content

  1. Introduction to Project Finance
  • Definition and core characteristics of project finance.
  • Key differences from traditional corporate finance.
  • Advantages and disadvantages of project finance for PPPs.
  • Typical project finance structures and participants.
  • Overview of the project finance lifecycle.
  1. Project Finance in the PPP Context
  • Why PPPs often utilize project finance.
  • Alignment of project finance principles with PPP objectives.
  • The role of the Special Purpose Vehicle (SPV) in PPPs.
  • Interplay between the PPP contract and financing agreements.
  • Project finance as a tool for risk mitigation and capital mobilization.
  1. Project Screening and Feasibility Assessment
  • Initial project screening for project finance suitability.
  • Technical, commercial, environmental, and social feasibility from a financier's view.
  • Market analysis and demand forecasting.
  • Assessing project economics and financial viability.
  • Due diligence requirements for project finance.
  1. Risk Identification and Allocation
  • Comprehensive identification of project finance risks (construction, operational, market, political, legal, financial).
  • Principles of optimal risk allocation to achieve bankability.
  • Risk mitigation strategies from a lender's perspective.
  • The role of risk matrices and risk registers.
  • Impact of risk allocation on debt pricing and terms.
  1. Debt Structuring and Modeling
  • Types of debt in project finance: senior, mezzanine, subordinated.
  • Understanding debt sizing and repayment profiles.
  • Debt sculpting methodologies (e.g., level debt service, level principal, annuity).
  • Key debt ratios: Debt Service Coverage Ratio (DSCR), Loan Life Cover Ratio (LLCR).
  • Covenants and events of default in loan agreements.
  1. Equity Contributions and Returns
  • Sources of equity for PPP projects (sponsors, private equity, institutional investors).
  • Modeling equity contributions and shareholder loans.
  • Calculating equity Internal Rate of Return (IRR) and Net Present Value (NPV).
  • Understanding dividend policy and cash sweep mechanisms.
  • Equity waterfall structures.
  1. Financial Modeling for Project Finance (Conceptual Overview)
  • Architecture of a robust project finance model.
  • Integrated financial statements (P&L, Balance Sheet, Cash Flow).
  • Key assumptions and drivers in project finance models.
  • Linkages between project revenues, costs, debt, and equity.
  • Importance of flexibility and transparency in models.
  1. Sources of Funding for PPP Projects
  • Commercial bank debt: syndication, club deals.
  • Export Credit Agencies (ECAs) and their role.
  • Multilateral Development Banks (MDBs) and Development Finance Institutions (DFIs).
  • Capital markets: project bonds and private placements.
  • Emerging sources: green bonds, Islamic finance.
  1. Security Package and Legal Documentation
  • Understanding the security package in project finance (pledges, assignments, mortgages).
  • Intercreditor agreements and common terms agreements.
  • Direct agreements with the public authority.
  • Key clauses in loan agreements and security documents.
  • Legal due diligence and opinions.
  1. Government Support and Credit Enhancement
  • Types of government support: guarantees (revenue, debt), viability gap funding, subsidies.
  • The impact of government support on project bankability and risk.
  • Credit enhancement mechanisms (e.g., partial risk guarantees, political risk insurance).
  • Assessing the fiscal implications of government support.
  • Balancing public sector support with private sector risk transfer.
  1. Financial Close Process
  • Understanding conditions precedent (CPs) to financial close.
  • Roles of financial advisors, legal counsel, and technical advisors.
  • Managing the documentation and due diligence process.
  • Key challenges and common delays in achieving financial close.
  • Post-financial close monitoring of CPs.
  1. Post-Completion Project Finance Management
  • Monitoring financial performance against projections.
  • Managing debt service and compliance with covenants.
  • Refinancing opportunities and strategies.
  • Managing changes in law, force majeure, and other risk events.
  • Financial reporting and investor relations.
  1. Project Finance Case Studies
  • Analysis of successful project finance transactions in various PPP sectors.
  • Examination of projects that faced financial distress and their resolution.
  • Lessons learned from real-world project finance structures.
  • Group exercises on analyzing specific project finance scenarios.
  • Discussion of best practices from international experience.
  1. Role of Financial and Legal Advisors
  • The scope of services provided by financial advisors.
  • The critical role of legal counsel in structuring and documenting transactions.
  • Selecting and managing advisory teams.
  • Fee structures and engagement models for advisors.
  • Ensuring effective coordination among advisors and project parties.
  1. Emerging Trends and Innovations in PPP Project Finance
  • Impact of ESG (Environmental, Social, Governance) factors on project finance.
  • Green finance and sustainable infrastructure funding.
  • Digitalization and technology's role in project finance.
  • New financial instruments and market developments.
  • Adapting project finance to evolving global economic conditions.

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport Pick Up is provided by the institute. Accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

For More Details call: +254-114-087-180

 

 

Securing Capital: Project Finance In Ppps Training Course in Fiji
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