Legal Issues in International Project Finance

Course Overview Project finance has been and continues to be used as an alternative way to finance infrastructure and industrial projects, both small and large. Project finance is being used in: Transportation (tolled roads, tolled estuarial crossings and railways) Energy (private power stations, waste-to-energy plants and gasdistribution pipelines) Sewage and water treatment plants Healthcare (construction and operation of new hospital buildings and clinical waste disposal plants) Education (provision of student accommodation and facilities for universities, colleges and schools) Provision of government offices This two-day training course offers a comprehensive and up-to-date briefing on legal issues in project finance with Topics covered include: Concepts of project finance Typical project structures How to identify and evaluate project risk The typical contractual structure How to choose the correct funding option for a project Dealing with operational aspects including pricing, performance and termination How bids are assessed and evaluated Comparison with other initiatives The current world market and changing financial structures Methodology The course will use real life case studies throughout to illustrate the various concepts. These case studies include toll road projects, hospitals, courts and prisons. Who should attend? In-house Lawyers in Financial Institutions Corporate Lawyers Lawyers in Private Practice Lawyers Employed in Government Project Finance Executives Project Consultants Government Agencies Public Sector Managers Potential Bidders Scheme Promoters Contractors
Day 1 Registration commences at 8:30 Programme runs from 9:00 - 5:00 daily Introduction to project finance History Concept structure Acronyms explained (ie. PPP/BOT) Understanding the process Public policy issues - why the process? Issues for governments Developing a legal framework The benefits of project finance and PPP Risk identification The players and their risks Types of risk Internal risks External risks Risk evaluation and allocation Understanding and evaluating project risks How best can these risks be mitigated or avoided? How best to allocate and transfer risks Workshop I Preparation of Risk Matrix for projects in different sectors (ie. trains, prisons, roads, hospitals etc.) Project documents Special Purpose Vehicle (SPV) Project agreement Construction agreement Operations agreement Finance agreements Workshop II A review of the practical steps to finance and construct a power station in the private sector. The case study will look at it from sponsor, banking and government viewpoints and will review set up; risk analysis, documentation required, integration to grid and regulation. Day 2 Financing sources Characteristics Funding spectrum Equity, bonds, debt, credit ratings Financing issues Structure examples Cost of capital Infrastructure funds Value for money Pricing and payment mechanisms Workshop III A review of selected case studies of completed projects in Asia and around the world to illustrate best practice in project finance - healthcare, education, power (and renewables), and transportation (roads, rail, airports) will be examined. Events post contract Monitoring construction Performance – benchmarking, market testing and penalties Force majeure events Disputes with the SPV Contract termination