Infrastructure Project Finance
This course enables participants to address the practical financial & structural issues surrounding infrastructure & other PPP/PFI projects. Participants will gain the confidence to successfully navigate the entire project finance process – from initial agreement to completion.
Who is this for?
- Finance professionals from the private and public sectors
- Finance professionals from energy, infrastructure, transportation and logistics, utilities and mining industries
- Government officials and legislators
- Equity investors and sponsors
- Project finance advisors within banks.
- Developers, engineers, lawyers and legal advisors, auditors and risk managers.
What will you learn...
BOT, PFI & PPP
- Explanation of BOT, PFI and PPP
- Procurement process –OBC, VFM, PSC, ITN, BFO, FBC
- Critique of PPP – pros and cons
- PF1 & PF2
- Differences between PPP and other forms of PF
- The administration of PPP
- The implications of refinancing
- Political risk and political risk insurances
Assessment and Appraisal
- Economic assessment
- Contractual revenue stream vs market-based revenue
- Due diligence
- Modelling, quantifying risk and laying off risk
- Alternative dispute resolution in contract law
- Tax optimisation issues in structuring the project
Financing
- Free Cash Flow, CFADS – importance and derivation
- Debt sizing with cover ratios, ADSCR, LLCR, PLCR
- Cashflow waterfall
- Control and reserve accounts – purpose and derivation
- Lock-up covenants, cash sweep mechanisms
- Trapped’ cash, minimum capitalisation laws
- Implications of default and Embedded recourse
- Market risk vs. performance risk
- Sponsor evaluation process
- Sponsor IRR vs. project IRR
Concession Agreements
- Standard form contracts, SLA, toll-based contracts
- Revenue basis – cost plus, unitary charge, tolls, hybrids
- Legal issues pertinent to PPP
- The consortium vs commissioning authority relationship
- The components of a Concession Agreement
- Tariff setting, tariff resets
- Benchmarking, market testing and resetting of revenue drivers,
- Currency exposures and mismatches
- Political force majeure, contract frustration & termination
- Direct agreements
- Step-in rights
The Development
- Risk identification, cost overrun, delays, performance
- Structure of insurances
- PESTLE Assessment
- The management of scope, time, cost & quality
- The FIDIC turnkey EPC contract
- Variation and change orders
- Completion guarantees & Credit guarantee facility
Dealing With Risk
- The three-step analytical approach
- Putting suspension on the Special Purpose Vehicle (SPV)
- Volatility modelling
- Illustration of the implementation of scenario analysis
Book You Course Now
Course ID: FIN06
Duration: 5 days
Course fee: £3,900.00
Meet your Tutor
Patrick opio
MSc MSc DIC MAPM
Project Managment Proffessional and trainer with nearly 20 years UK and overseas experience in planning and project controls.