Available dates

This course has no confirmed dates in the future. Subscribe to be notified when it is offered.

About the course

Examines the latest structuring, funding & cash-flow modelling techniques for PPPs

Infrastructure development is essential to sustaining economic growth and improving competitive position in today’s global markets. Often traditional public sector funding sources are severely constrained when it comes to financing infrastructure facilities. Innovative approaches to funding such services, as well as programs for Public Private Partnerships (PPPs), have been endorsed by many countries as means of accelerating their delivery.

An essential element of PPP is the desire to link public sector accountability with private sector discipline, expertise, efficiency and financial resources. This is equally true in both industrialized and emerging markets. In this hands-on program participants will become thoroughly familiar with the array of PPP models from Supply and Service Contracts, Management Agreements, Leasing, DBFO, BOT, BOO, Privatization and a continuum of other approaches. They will see how the concept of balancing risk and ‘value for money” is central to governmental policy and decision-making. They will also consider the outlooks of various stake-holders creditors and guarantors of projects, when approaching PPP transactions.

While differentiating between countries and sectors this program is designed to help participants break the project analysis process into its component parts and evaluate the roles played and sources of support provided by many parties. Techniques for assembling information and making qualitative judgments are described. Tools used to conduct careful quantitative financial analysis are explained thoroughly. Cases and examples from around the world that have successfully weathered difficult markets, as well as some that have deteriorated or failed, are used to ensure understanding and give participants practice in the application of concepts.

Careful attention is given to techniques for sourcing and enhancing the terms of funding both in domestic and international projects. Elements unique to both bank and capital markets approaches to financing of PPP projects in transport, social services, and water sectors are highlighted.

Learn about:

  • Availability vs, Concession Models of PPP
  • Structuring Transactions and Anticipating Problems
  • Sources of Finance Banks, Capital Markets
  • Rating Agency Considerations
  • Credit Enhancement Techniques
  • Private Equity and Other Investment Funding
  • Distinctive Features of International Projects in Industrializing Countries
  • Breakout Case Studies:
  • Roads, Rail
  • Ports and Airports
  • Water and Sanitation
  • Hospitals, Schools and Other Social Infrastructure

AGENDA

Day 1

PPP Overview; Road and Other Transport Project Financing What is a Public Private Partnership (PPP)?

  • Public Private Partnerships (PPP) Principles
  • Roles for the Public and Private Sector
  • Different Structures and Degrees of Private Participation
  • Contract Services: Operations and Maintenance (O&M), O&M and Management
  • Leasing, Lease Develop Operate (LDO), Lease Purchase, Sale Leaseback
  • Design Build: DB, DBM, DBO, DBFO, BOT, BOO Concessions
  • Privatization

Examples: Power, Roads and Other Transport; Social Infrastructure

PPP Tender Process

  • Specifying User Needs in Output Terms
  • Private Sector Informational Requirements
  • Identifying Bidders and Assessing Risks Negotiating Strategies and Closing

Sources of Finance: Managing and Allocating Risks in PPP; Making a Deal Bankable

  • Collecting Information/ Macro and Micro Concerns of Banks
  • Risk Allocation in PPP/ Developing a Specialized Matrix
  • Risk Mitigation Techniques
  • Analysing Risk Assumptions (Operating and Maintenance, Construction, Financial, Revenues)
  • Environmental Considerations
  • Consultants in the PPP Process

Quantitative Risk Analysis and Cashflow Forecasts

  • Requirements of Creditors vs Investors
  • Other Stakeholder Considerations
  • “Value for Money” and the Public Sector Comparator (PSC); Unitary Payments (UPs)

Case Study: Light Rail Finance

Partnering with multiple government authorities to raise finance for timely completion of a rapid transit system

Case Study: Financing a Tollroad Participants will break into groups to evaluate the financing scheme for a toll road. They will assess the allocation of risks, and concession terms, and other contractual agreements. A cash flow model will be used to test qualitative assumptions.

Day 2

Themes: Financing Water, Sanitation and Other Social Services Projects

Case Discussion

Legal and Contractual Issues in PPP Projects

  • Regulatory Framework and Enforceability
  • Policy Objectives of the Government Concessions and Licensing,
  • Process and Oversight

Case Study: Reviewing a DBFO Term Sheet

Sources of Credit and Risk Support in International PPP Projects

  • Official Risk Enhancers and Development Banks
  • Rating Agencies and Pension Fund Sales
  • Accessing Local Capital Markets in Developing Countries

Case Study: Reviewing a DBFO Term Sheet for a Roadway or Other Transport

Water and Sanitation Infrastructure

  • Special Features of Water and Sanitation Projects
  • Array of Funding Structures for Service Agreements and Concessions
  • Who are the Players? Investors? Lenders?

Two Case Studies:

  • Financing a Water Treatment Plant

Participants will review the terms of a concession for a municipal wastewater treatment plant.

  • Non-revenue Water (NRW)

Understanding a service contract for reducing non-revenue water. Considering the merits of the proposed financing approach.

PPP and Social Infrastructure

  • Financing Hospitals, Schools, Prisons, Others
  • Sample Concessions and Contract Terms
  • Risk Evaluation and Allocation
  • Monitoring Requirements

Case Example: Financing a Hospital Self-test and Wrap-up

Day 3

Credit and Political Risk Support; Water and Social Infrastructure Sources of Credit Support and Risk Support for International Projects

  • Official Risk Enhancers and PPP
  • Export Credit Agencies
  • Development Institutions
  • Rating Agencies and Pension Fund Sales
  • Private Insurers and Credit Wraps

Water and Sanitation Infrastructure

  • Special Features of Water and Sanitation Projects
  • Array of Funding Structures for Service Agreements and Concessions
  • Who are the Players? Investors? Lenders?

Two Case Studies:

Financing a Water Treatment Plant Reviewing the structure of a water sanitation project that leveraged development bank political support to access funding in the capital markets.

Non-revenue Water (NRW) Participants will review the terms of a concession for a municipal wastewater treatment plant. They will also review a service contract for reducing non-revenue water. In each case they will consider the merits of the proposed financing.

PPP and Social Infrastructure

  • Financing Hospitals, Schools, Prisons, Others
  • Sample Concessions and Contract Terms
  • Risk Evaluation and Allocation
  • Monitoring Requirements

Case Example: Financing a Hospital

Self-test and Wrap-up

Who should attend

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
  • Treasurer
  • Project Manager
  • Accountant
  • Analyst
  • Sales Manager

Trust the experts

Meg Osius

Ms. Osius designs and delivers executive level training sessions as well as providing consulting services to a wide variety of organizations worldwide. Specializing in international project finance, capital markets, and risk management, she works with corporate investors, private and development ...

More...

Course reviews

Downloadable files