PPP/PFI Project Finance & Infrastructure

Attend this 3 Day Training Course And You will learn: What are the investment options for Government?: - Fund developments using the Government budget - Use private (equity & debt) capital, e.g. PPP - Privatise existing state public service utilities What are the benefits (& dis-benefits) of using these options as a procurement mechanism? How successful has privatisation been in delivering investments? What are the funding options for power, infrastructure and PPP projects? How much debt? How much equity? Why? Who are the key investors in such projects? Why? What do investors seek, & what are their expectations and limits? What do bank lenders require, & what constraints do they impose? How best to attract capital markets (e.g. pension funds, life insurance companies and sovereign wealth funds) to such investments. Which funding options best match specific project opportunities, & why? What is the best recipe for success? Why have some projects failed? What have been the problems? Could they have been spotted earlier? What has been the international experience across sectors? How can failure be avoided? What steps should be taken in project preparation? How can political risk be mitigated? What clauses are key in the underlying project documents to ensure success? What role should Government take? Should they be a shareholder? What remedies are there when projects fail, or are faced with changing circumstances? 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 Supported by:
Day 1 Theme: the essential components which make up an infrastructure Project Finance / PPP deal: Overview: Characteristics of infrastructure projects: public v. private Key players in an infrastructure project finance transaction Terminology & acronyms used (PPP, IFI, IPP, etc.) Origins & recent history of privatisations, project finance & PFI/PPP in infrastructure How are project financings initiated? What steps have to be taken? What is the state of the infrastructure project finance / PPP market post-the financial crisis? What is the impact of Basel III on infrastructure project finance & PPP? Funding Structures Conventional government-backed loan security v. project finance/PPP structures: advantages/disadvantages Funding structures & proportions of debt & equity Cross-sector comparisons Introduction to infrastructure & Public Services Project Finance Concessions(PPP): What is PPP: why the recent interest? The choices for government: public sector comparators & value for money analysis. On/off balance sheet: rationale, issues & criteria for PPPs Advantages / disadvantages of PPPs in infrastructure The bid process & PPPs Common problems arising in PPP projects Risk Identification & Analysis What is risk? Why are lenders risk averse? Identification of risk types Environmental risks : EQUATOR Principles Evaluation of the impacts of risk Creation of a risk matrix Risk mitigation: how can risk be mitigated and controlled, e.g. political risk? Role of the capital market derivatives in risk mitigation Role of insurance to mitigate risk: commercial, financial, political Sources of Debt & Equity Equity funds: their requirements & expectations Developers & investors Private equity & SWF’s Pension funds & life insurance companies Key issues for Investors Privatisations of public services: how are they funded? Debt: availability, terms, conditions & key issues for lenders: Development bank funding Export credits Commercial loans & term sheet The bond markets: how they work & what are ratings Islamic funding Miscellaneous sources: offsets, leasing & barter Project Appraisal & Bid Process Cash-flow models: how to structure a model. What measures to calculate Issues to look out for DCF, NPV & IRR: what do they mean? Criteria & Ratios used by lenders & investors to measure performance Project documents: information memoranda, etc. Role of financial advisor & other consultants Due diligence : what is it ? Who pays? Cash-flow & Term Sheet Exercises Course participants will be invited to discuss a project cash-flow and term sheet to identify key issues. Day 2 Theme 1: (a) what contract documents are required, and (b) what are the key clauses? Project Documents: Project Finance & PPP Concessions EPC / construction contract Operations & maintenance contract Supplies contract Sales contract Loan agreement: typical loan covenants Shareholders agreement PPP concession agreement Theme 2: what has been the experience of Project Finance / PPP in the power sector? Real-life Case Histories from developed and/or emerging markets worldwide will be taken and discussed for a range of projects in all the sectors mentioned below. Why have some succeeded, whereas others have failed? Is privatisation a realistic option? Lessons from each will be identified and noted. Thermal power (oil, gas, coal, nuclear): including: coal-fired power station, Central Europe an IWPP in the UAE marine diesel plant in Togo nuclear power projects Hydropower (large & mini-): including: - large hydro IPPs in S. America & Turkey - mini-hydro C. Europe Power transmission & distribution: the issues & problems. How to harness private capital Renewable energy: including: - Wind power project, Cen. Europe - Solar power, Spain - Biomass plant, Mauritius Day 3 Theme: what has been the experience of Project Finance / PPP in the transport sector? Real-life Case Histories from developed and/or emerging markets worldwide will be taken and discussed for a range of projects in all the sectors mentioned below. Why have some succeeded, whereas others have failed? Is privatisation an option? Lessons from each will be identified and noted. Roads: including: - M6 Toll, UK - M1/M15, Hungary - R1, Slovakia - Bina Istra, Croatia - Toll-road model in Chile - N1/N4 Platinum Highway, S. Africa - Lekki Expressway, Nigeria Bridges & tunnels: including: - Dartford bridge, UK - Milau viaduct, France - Channel tunnel / Eurotunnel - Oresund bridge, Sweden - Denmark Railways & Metros: including: - TGV PPPs, France - Rift valley railway, Kenya – Uganda - Hong Kong mass transit - Caracas Metro, Venezuela - London Underground PPP - CroydonTramlink - Dubai Metro Ports & airports: including: - Spata airport, Athens - Tirana airport, Albania - Quito airport, Ecuador - Gdansk port, Poland - Air traffic control: NavCanada Private Investment in the Municipal and Public Accommodation Sectors Hospitals: including:- West Middlesex & UCH, London; Braga, Portugal Schools: including:- Argyll & Bute, Scotland Prisons: including:- Fazakerley, UK Govt. & office buildings: including:- HM Treasury Building, UK; Mapeley STEPS, UK Water treatment plants: including:- Seafield, Scotland; Muharreq, Bahrain Waste management: including:- Manchester PPP, UK Stadiums: including: Wembley Stadium; Lille Stadium, France Telecommunications: including:- Broadband PPP, Bucharest: Course summary and close