Project Finance for PPP Projects

This 4-day programme will provide you training on project structuring and financing for PPP

  • Course Instructor

    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.

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

  • The course director is the president of a global network of investment bankers, project advisors and industry specialists.

    He has over 25 years of hands-on project finance experience, in both debt and equity. He has been the lead banker and chief advisor for some US$28.3 billion of project financing world-wide (in over 37 countries). He now specialises in the integration of political risk structures into BOO/ BOOT and independent power project financing.

    He has pioneered a number of applications by cross-fertilising practices from one region or industry sector to another. He is a widely recognised author and expert on risk mitigation techniques in project finance structuring.

    Now based in Sydney, Australia, he has worked at every level of international project financing, for institutions such as Continental Bank, a commercial bank in Chicago; European Banking Company, a consortium merchant bank in London; Prudential–Bache Capital Funding, a Wall Street investment bank in Australia and as the Project Finance Director of Indosuez Australia, now Credit Agricole.

    Courses run by this instructor