Public Private Partnerships (PPPs) have become established as aproven procurement method for financing and delivering public infrastructure projects. They now exceed over $110 billion of projects in development in Europe alone. Local funding has always been accessed for these projects, but the restructuring of the banking market, driven by Basel II and tougher EU accounting practices will open up the market to new opportunities for international providers.

 

Examine international best practice from over 25 key case studies
• Understand PPP sectors and project types
• Identify considerations for the tender / bidding process
• Evaluate risk and implement risk allocation structures
• Apply quantitative analysis techniques to PPP projects
• Manage political risk in international projects
• Analyse financing structures and key ratios
• Explore insurance considerations and the ‘owner-controlled insurance programme

 

Who should attend?
• Project Finance Executives
• Project Analysts
• Financial Advisors
• Investment Analysts
• Project Sponsors,
• Contractors & Bankers
• Project Finance Lawyers
• Privatisation Specialists
• Government Agencies /
• Negotiators
• Policy Specialists
• Corporate Finance Executives
• Tax / Accounting Specialists
• Insurance Specialists
• Project Consultants
• Project Engineers / Construction Companies
• Public Sector Managers
• Export Credit Agencies

 

Supported By:

 

Day 1

Registration commences at 8:30

Programme runs from 9:00 5:00 daily

Fit of project finance to the ppp spectrum of 8

• Privatisation
• BOO
• BOT
• Leasing / affermage
• Management contracts
• Service and supply contracts
• Cooperatives

PPP sectors and project types

• Transport infrastructure
• Social infrastructure
• Public / military infrastructure

PPP processes and stages / timing

• Policy formulation:
• International comparisons
• Competition policy
• Role of the regulator
• Unsolicited projects

 PPP interfaces

• Grantor / government
• Construction contractor
• Operator / facility manager
• Government / regulator
• Purchaser / user
• Inputs provider

Role of the government PPP unit

Does the onestopshop really work? What policies and procedures need to be in place to make the PPP unit work?

 Partnerships Victoria

• Originally closely aligned to the UK model, it has become the
• Australian leader

Commence team assignments for day 4

M2 Tollway (Extendable BOT), Australia Tollway Endeavour SCH (CreditEnhanced PFI), UK Hospital

 PPP tender / bidding

• Output specifications:
• Standard concession terms and conditions
• Consortium bidding dynamics
• Invitation to qualify
• The ABN AMRO model
• Bid evaluation procedures
• Concession finalisation

Case study:

Indian highways the simplest output specification yet, in the world.

Day 2

• Quantitative analysis for PPP projects
• The key debt ratios
• Valueformoney / public sector comparator
• The investor’s measures
• Cashflow forecasting
• Choosing sensitivities
• Calculating liquidated damages / overrun / retention
• requirements

Risks and structuring

• The 6 risk systems
• The 16 risk categories
• The 59 means of risk identification
• Risk matrices
• The 174 risk structures
• Risk tradeoffs / tradeons

Funding PPP projects

• Debt and equity
• Government
• Leasing / leveraged leasing
• Monoline insurers / credit wraps

Ratings for ppp project financings

• How to get one from Moody’s / Standard & Poors / Fitch
• The 6 key ratings factors
• Why risk isn’t priced in a project financing
• Impact on PPP refinancing
• Credit derivatives

Day 3

PPP insurances workshop

• Guest Speaker: Paul Knowles, Partner, JLT Group, London

Insurances / risk matrix

• Schools
• Hospitals
• Tollways
• Bridges

Ownercontrolled insurance program (OCIP)

• Delay in start-up
• Hybrid force majeure

Case studies:

• Autopistas del Sol (OMT), Argentina: even with currency mismatches, a leading tollroad bond issue.
• Greenwich Hospital, UK: the landmark CPI indexedlinked issue set.
• Subic Bay Power (144A)
• Philippines: an unrated BOT notes issue, with no politicalrisk coverage and no residual / tail.
• Contractual architecture
• Concession agreements
• Special purpose vehicles (the 6 types)
• Operations / management (O&M) contracts
• Turnkey construction contract
• Indirect / tripartite and support agreements
• Government guarantees / puts

Funding documentation

• Loan agreements
• Joint venture / shareholder agreement
• Assignment of contracts / insurances
• Offshore proceeds account
• Swaps, securitisation

Independent reviews

• How to scope the review
• Fit to credit approval
• The “bankable” feasibility study

Role of the advisor(s)

• The five standard reviews
• Construction cost audit
• Value management

Case studies:

• Highway 407, Canada: how value engineering contributed to this 2 step program.
• GSZ East Superhighway, China: failure but for the realestate component.
• A59 Tollway, Netherlands: this DesignBuild
• FinanceMaintain (DBFM) presents 14% savings over the Public Sector Comparator.
• Contractual architecture
• Concession agreements
• Special purpose vehicles (the 6 types)
• Operations / management (O&M) contracts
• Turnkey construction contract
• Indirect / tripartite and support agreements
• Government guarantees / puts

Funding documentation

• Loan agreements
• Joint venture / shareholder agreement
• Assignment of contracts / insurances
• Offshore proceeds account
• Swaps, securitisation

 Independent reviews

• How to scope the review
• Fit to credit approval
• The “bankable” feasibility study

Role of the advisor(s)

• The five standard reviews
• Construction cost audit
• Value management

Why do projects go wrong?

Day 4

International projects political risk

Export Credit Agencies (ECA) / bilateral agencies

Tactics for approaching the ECAs

Multilateral agencies

• How to approach the Multilaterals

Other political risk cover structures

• Captive insurers and political risk insurances
• Offshore proceeds accounts

Development finance agency PPP

• Social / environmental mandates
• Sector / legislative reform
• Regulations and competition

New horizons for PPP projects and funding sources

• Specialist PPP funds
• “Green” funds
• Emergingmarket funds
• Tax structures
• Infrastructure funds
• Capital markets and credit derivatives

Course summary and close

• Richard Tinsley

  Richard Tinsley is a banker/engineer/economist with over 30 years experience, mostly as a strategic / financial advisor or as the lead banker on numerous transactions -- totalling US$14.8 billion at last count in 35 countries -- but also as CEO and CFO of a project development and operating company. (He issued one of the first true Project-Finance bonds.) He has worked in five countries: Ireland, Canada, USA, UK, and now Australia. Richard is President of International Advisory & Finance. IAF is a network of firms in the infrastructure, energy, and resources finance sectors in New York, Boston, California, Mumbai, Johannesburg, Melbourne, and London.
  
  In the finance field, Richard has been Project-Finance director at Continental Bank (Chicago); European Banking Company (London); Prudential-Bache Capital Funding (Wall St.), and Indosuez Australia (Sydney, Australia -- now Calyon).
  
  As a professional independent director, he serves as an adviser to infrastructure, energy, resources, telecoms, and water utilities companies worldwide. Richard Tinsley has many world-first Project-Finance applications and particularly relishes the cross-fertilisation of structures from one industry sector to another.
  
  Richard teaches the full range of Project-Finance courses around the world. He is the author of the self-study guide and CD-ROM on Project Finance as well as two books: Advanced Project Financing: Structuring Risk, 1st Edition, and Project Finance in Asia Pacific: Practical Case Studies for Euromoney Books.
  
  Richard is a Visiting Fellow at the Applied Finance Centre for Macquarie University throughout Asia and gives the Project Finance core and Infrastructure Finance elective for the University of Stellenbosch’s Master in Development Finance in Cape Town, South Africa.

  Courses run by this instructor

  • Advanced Project Finance Workshop

Project Finance for PPP Projects

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.

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Project Finance Workshop

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3-6 Dec 2012 (London, UK)

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Oil, Gas & Power Project Finance

10-12 Oct 2012 (London, UK)

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