Milestone Achievement: Financial Close and Post-Financial Monitoring Training Course

Introduction

Achieving Financial Close marks a pivotal moment in any Public-Private Partnership (PPP) project, transitioning it from a conceptual agreement to a fully funded and legally binding commitment. This complex phase involves the meticulous satisfaction of numerous conditions precedent, the finalization of intricate legal documentation, and the successful mobilization of debt and equity. However, the journey does not end there; effective post-financial close monitoring and proactive contract management are equally critical to ensure the project's long-term performance, financial sustainability, and adherence to contractual obligations, safeguarding public interests and investor returns over decades.

This intensive training course is meticulously designed to equip public officials, private sector project managers, financial institutions, and legal professionals with the advanced knowledge and practical tools required to navigate the complexities of Financial Close and implement robust post-financial monitoring frameworks for PPP projects. From understanding the conditions precedent and managing the documentation process to establishing performance monitoring systems, handling variations, and addressing potential disputes, you will gain the expertise to ensure seamless project commencement and sustained operational excellence. This empowers you to drive successful project delivery, mitigate risks, and maximize the long-term value of PPP investments.

Target Audience

  • Project Managers and Directors in public and private sectors.
  • PPP Unit Staff responsible for project implementation and oversight.
  • Financial Institutions and Lenders involved in project finance.
  • Legal Professionals specializing in project finance and PPP contracts.
  • Contract Managers and Administrators.
  • Risk Management Professionals.
  • Government Officials involved in project governance and performance monitoring.
  • Anyone involved in the closing and operational phases of PPP projects.

Duration: 10 days

Course Objectives

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

  • Understand the definition, significance, and key stages of Financial Close in PPPs.
  • Grasp the conditions precedent (CPs) to Financial Close and strategies for their satisfaction.
  • Analyze the roles and responsibilities of various parties during Financial Close.
  • Comprehend the legal documentation required for Financial Close.
  • Evaluate common challenges and delays encountered in the Financial Close process.
  • Develop practical skills in managing the transition from Financial Close to construction.
  • Navigate the intricacies of post-financial close monitoring and performance management.
  • Formulate robust frameworks for tracking financial, technical, and operational performance.
  • Understand mechanisms for managing contract variations, claims, and disputes.
  • Champion best practices in stakeholder communication and reporting during operations.
  • Recognize the importance of proactive risk management throughout the project lifecycle.
  • Appreciate the fiscal implications of post-financial close events and contingent liabilities.
  • Distinguish between different types of performance indicators and their application.
  • Understand the process of contract renegotiation and termination.
  • Strategize for ensuring long-term value for money and public interest in operational PPPs.

Course Content

  1. Introduction to Financial Close in PPPs
  • Definition and strategic importance of Financial Close.
  • The transition from procurement to implementation.
  • Key milestones leading up to Financial Close.
  • Overview of the parties involved and their roles.
  • Why Financial Close is a critical gateway for PPP projects.
  1. Conditions Precedent (CPs) to Financial Close
  • Understanding the nature and types of CPs (e.g., legal, regulatory, financial, technical).
  • Strategies for managing and satisfying CPs efficiently.
  • Common challenges in fulfilling CPs and mitigation approaches.
  • The role of due diligence in verifying CP satisfaction.
  • Impact of unresolved CPs on project timelines and costs.
  1. Legal Documentation for Financial Close
  • Review of core project agreements (e.g., Concession Agreement, Loan Agreement, Security Package).
  • Intercreditor Agreements and Common Terms Agreements.
  • Direct Agreements with the public authority.
  • Equity Subscription Agreements and Shareholder Agreements.
  • Ensuring consistency and enforceability across all documents.
  1. Roles and Responsibilities at Financial Close
  • Role of the public authority and PPP Unit.
  • Responsibilities of the private consortium (sponsors, equity providers, contractors, operators).
  • The critical role of lenders and their legal/technical advisors.
  • Financial advisors and their support in reaching close.
  • Coordination and communication among all parties.
  1. Managing the Financial Close Process
  • Developing a detailed Financial Close checklist and timeline.
  • Strategies for efficient document negotiation and execution.
  • Addressing outstanding issues and last-minute challenges.
  • The importance of a dedicated Financial Close team.
  • Lessons learned from complex Financial Close processes.
  1. Transition from Financial Close to Construction
  • Mobilization period and commencement of construction.
  • Handover of responsibilities from project development to implementation teams.
  • Setting up project management and governance structures for construction.
  • Ensuring availability of land, permits, and initial funding.
  • Managing early-stage risks during mobilization.
  1. Introduction to Post-Financial Close Monitoring
  • The importance of ongoing monitoring for long-term PPP success.
  • Shifting focus from transaction to performance management.
  • Objectives of post-financial close monitoring for public and private sectors.
  • Key areas of monitoring: financial, technical, operational, social, environmental.
  • Establishing a robust monitoring framework.
  1. Financial Performance Monitoring
  • Tracking project cash flows, debt service, and equity returns.
  • Monitoring compliance with financial covenants and ratios (e.g., DSCR, LLCR).
  • Managing reserve accounts and cash sweeps.
  • Financial reporting requirements for lenders and shareholders.
  • Early warning indicators for financial distress.
  1. Technical and Operational Performance Monitoring
  • Monitoring adherence to output specifications and service levels.
  • Key Performance Indicators (KPIs) and performance measurement.
  • Deduction regimes and penalty mechanisms for underperformance.
  • Quality assurance and control during construction and operations.
  • Technical audits and independent engineering reviews.
  1. Contract Management and Administration
  • Establishing a dedicated contract management team and systems.
  • Managing contract variations, change orders, and scope adjustments.
  • Handling claims and compensation events.
  • Dispute avoidance and resolution mechanisms.
  • Maintaining accurate contract records and documentation.
  1. Risk Management During Operations
  • Ongoing identification and assessment of operational risks.
  • Monitoring retained risks for the public sector.
  • Managing force majeure events and unforeseen circumstances.
  • Implementing risk mitigation strategies throughout the project life.
  • Adapting to changes in market conditions, technology, and regulations.
  1. Stakeholder Engagement and Communication (Post-Close)
  • Maintaining effective communication with all project stakeholders.
  • Reporting project performance to government, users, and the public.
  • Managing public perception and expectations.
  • Addressing community concerns and social impacts.
  • Building and maintaining a collaborative relationship between partners.
  1. Contract Renegotiation and Termination
  • Common reasons for contract renegotiation during operations.
  • Principles and best practices for fair and transparent renegotiation.
  • Managing distressed PPP projects and potential defaults.
  • Conditions and consequences of contract termination.
  • Contingency planning for project failure or early termination.
  1. Long-Term Value and Handback Considerations
  • Ensuring sustained value for money throughout the contract term.
  • Planning for the end-of-concession period and asset handback.
  • Asset condition monitoring and maintenance requirements.
  • Transfer of knowledge and operational capabilities.
  • Post-handback responsibilities and liabilities.
  1. Case Studies and Practical Applications
  • Analysis of real-world Financial Close processes and their challenges.
  • Examination of successful and problematic post-financial close monitoring regimes.
  • Hands-on exercises in developing performance dashboards and reporting templates.
  • Group discussions on managing complex variations and disputes.
  • Lessons learned from international experiences in PPP contract management.

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

 

Milestone Achievement: Financial Close And Post-financial Monitoring Training Course in Latvia
Dates Fees Location Action