Euromoney Legal Training

Course overview

Project Finance is being introduced in both developed and developing countries as an alternative way to finance infrastructure and industrial projects, both small and large.

The concept is being used in transportation (tolled roads, tolled estuarial crossings and railways); energy (private power stations, waste-to-energy plants and gas-distribution 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); and provision of government offices.

This two-day training course offers a comprehensive and up-to-date briefing on project finance with a focus on PFI/PPP projects.

This course will cover:

• The key concepts of PPP
• Typical project structure
• 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
• The role of the EU Procurement Directives
• How bids are assessed and evaluated
• Comparison with other initiatives
• The current world market for PPPs with country analysis

Case studies:

The training 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
• Lawyers in private practice
• Lawyers employed in business or government
• Project finance executives
• Project consultants
• Government agencies
• Public sector managers
• Potential bidders
• Scheme promoters

Day 1

Introduction to project finance

• History
• Concept structure
• 1992 - the beginnings of PFI in the UK
• Overview of the world market for PPPs with country analysis

Key concepts of PPP

• Acronyms explained e.g. PPP, PFI, DBF, BOOT
• PPP structure – legal, financial and techincal
• Public policy issues – why use the process?
• Issues for governments
• Developing a legal framework
• The benefits of PPP

The project structure

• Special Purpose Vehicle (SPV)
• Project agreement
• Construction agreement
• FM/Operations agreement

Case study 1: PPP projects in China

Case study 2: Hungarian toll road (failure)

Case study 3: the DBFO road project with shadow tolls (UK)

Risk identification and allocation

• Identifying, understanding and evaluating risks
• How can these risks be mitigated?
• How best to allocate and transfer risks to the relevant parties?
• The role of insurance

The development of PPPs in the US public finance markets

Case study 4: Indiana toll road with active tolls (USA)

Summary of day one

Day 2

Financing issues in PPPs

• Typical contractual structure
• Project cost of capital for PPPs
• Cost of equity - private vs. public sector
• Debt service cover ratios
• Modelling the PPP project and public sector comparator with examples
• Value for money

Assessing funding options for PPPs

• Choosing the correct funding option for the project
• Assessing the options available
• Equity
• Bonds
• Debt
• Impact on risk allocation
• Hedging instruments
• Credit ratings

Case study 5: Islamic financing

Case study 6: a UK hospital project

The procurement process

• Developing the Outline Business Case (OBC)
• Developing model and standardised documentation
• The EU Procurement process for PPPs
• Outline of process
• New developments in 2006/2007
• Assessing and evaluating the bids
• World Bank approach
• Other initiatives

Operational aspects

• Contract duration
• Pricing and payment mechanisms
• Performance – benchmarking, market testing, penalties
• Price adjustment
• Force majeure/termination

The equator principles Summary and conclusion

Case study 6: PPPs in Australia, including County Court, Victoria and Adelaide Prison

 

• Geoff Haley

  Geoff Haley is a highly regarded practicing lawyer within the project finance industry. He lectures extensively on BOOT and privatisation issues both in the UK and overseas, has had many articles published and contributed to several books on project finance.
  
  Geoff is a lawyer specialising in project finance, Public Private Partnerships and construction both in the UK and overseas. He has specialist expertise in large and complex projects in the fields of energy, waste management, water treatment, transportation, healthcare and education. Projects include Channel Tunnel; Channel Tunnel Rail Link; UK DBFO Roads; Jordanian BOOT Projects; Tbilisi City Water; Belfast Courts; Government Accommodation Projects.
  
  He is the founder and Chairman of IPFA (International Project Finance Association), a honorary Professor of Project Finance and visiting lecturer to the University of Dundee. He is the author of numerous publications including “A-Z of Boot”.

  Courses run by this instructor

  • Project Finance - Johannesburg

Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.

Financing Agreements in Project Finance - Dubai

12-13 Jun 2012 (Dubai, United Arab Emirates)

By attending this course you will analyse the different documents and the key provisions of project loan agreements

Project Finance - London

24-25 May 2012 (London, United Kingdom)
24-25 Sep 2012 (London, United Kingdom)

This Euromoney Legal Training course explains how project finance works in detailed and practical terms. This programme aims to expose delegates to the rapidly changing face of project finance across the world and thus ensure a full awareness of the different methods being adopted in various countries and sectors. With interactive workshops being an integral part of this course, delegates will examine real life examples of project finance. Receive up-todate information on current projects, and benefit from the new ideas being implemented globally.

16th Project Finance School - London

9-13 Jul 2012 (London, United Kingdom)

This five-day Euromoney Legal school will be invaluable in increasing your knowledge and understanding of the key legal and contractual issues in international project finance and improve your ability to solve practical problems.

Financing Agreements in Project Finance - Paris

20-21 Sep 2012 (Paris, France)

An in-depth overview of the different documents involved, effective documentation techniques and the key provisions of a project loan agreement

Renewable Energy Project Agreements - London

26-27 Sep 2012 (London, United Kingdom)

By attending Euromoney Legal Training’s newly designed Renewable Energy Project Agreements course, you will understand the important legal issues and other critical aspects involved when structuring and documenting a typical RE Project.

Project Finance - Dubai

9-11 Oct 2012 (Dubai, United Arab Emirates)

This Euromoney Legal Training course explains how project finance works in detailed and practical terms. This programme aims to expose delegates to the rapidly changing face of project finance across the world and thus ensure a full awareness of the different methods being adopted in various countries and sectors. With interactive workshops being an integral part of this course, delegates will examine real life examples of project finance. Receive up-todate information on current projects, and benefit from the new ideas being implemented globally.

Project Finance - Johannesburg

25-27 Jun 2012 (Johannesburg, South Africa)

This Euromoney Legal Training course explains how project finance works in detailed and practical terms. This programme aims to expose delegates to the rapidly changing face of project finance across the world and thus ensure a full awareness of the different methods being adopted in various countries and sectors. With interactive workshops being an integral part of this course, delegates will examine real life examples of project finance. Receive up-todate information on current projects, and benefit from the new ideas being implemented globally.