Professional Course

Infrastructure and Project Finance

Euromoney Learning, In New York
3 days
3 days
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Course description

Infrastructure and Project Finance

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.

Training content

Day 1

PPP Overview; Road and Other Transport Project FinancingWhat 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
  • Availability Models: Design Build: DB, DBM, DBO, DBFO
  • Concessions: BOT, BOOT, BOO
  • Privatization

Examples: Power, Roads and Other Transport; Social Infrastructure

The 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 Debt Providers
  • Risk Allocation in PPP/ Developing a Specialized Matrix
  • Risk Mitigation Techniques
  • Analyzing Risk Assumptions (Operating and Maintenance, Construction, Financial, Revenues)
  • Environmental Considerations

Quantitative Risk Analysis and Cashflow Forecasts

  • Debt vs Equity and Key Measurements
  • Probabilistic Modeling
  • Testing Sensitivities
  • Requirements of Creditors vs Investors
  • Other Stakeholder Considerations
  • “Value for Money” and the Public Sector Comparator (PSC); Unitary Payments (UPs)

Case Study: Financing a Toll-roadParticipants 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

Sources of Finance for PPP; Railways, Ports and AirportsLegal and Contractual Issues in PPP Projects

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

Case Study: Reviewing a DBFO Term Sheet

Financing Issues: Sources of Funds and Credit Enhancement for PPP

  • Bank Debt for Construction and Operation
  • Refinancing Possibilities
  • Club Deals, Syndications and Secondary Market Resale
  • Term Sheets, Information Memoranda and Credit Agreements
  • Conflict Resolution

Case Example: Canada Line Rapid Transit

  • PPP and Rapid Transit Projects
  • Phases of the Canadian Selection Process
  • Public Sector Comparator and Risk Assessment
  • Sensitivity to the Discount Rate

Using Capital Markets for Infrastructure Finance

  • Special Consideration in Issuing Bonds
  • Sales Process, Covenants, Workout Considerations
  • Role of the Rating Agencies
  • Tapping Local Markets

Financing Ports and Airports

  • Globalization of Production and Changing Technology
  • Requirements for Large Ships/Hub Status and Benefits
  • Environmental and Safety Concerns/ Dredging
  • Information Technology
  • Port Administration Models

Airports Compared to Ports

  • Public Financing vs. Private Finance
  • Main Terminals, Runways, Periphery Projects
  • Nature of Traffic
  • Origination and Destination or Hub Facilities?
  • Revenue Diversification
  • Upgrades or Greenfield?

Case: Financing an AirportCase focuses on conflicting goals of government and other stakeholders from the concessionaire to the contractor, operator and other stakeholders. Review of term sheet and cash flow projections. Evaluating project risks and their allocation through contracts in an airport transaction. Proposed financing mix, and rating agency considerations in evaluating financing structure are considered.

Day 3

Credit and Political Risk Support; Water and Social InfrastructureSources 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 PlantReviewing 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 HospitalSelf-test and Wrap-up


Course fee: £3645 + VAT

Certification / Credits

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

Why choose Euromoney Learning?

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