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
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
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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
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.
2-13 Sep 2013 (Johannesburg, South Africa)
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28-30 Oct 2013 (Johannesburg, South Africa)
29-31 Jan 2014 (Johannesburg, South Africa)
20-22 Oct 2014 (Johannesburg, South Africa)
A three day financial training workshop on Renewable Energy Project Finance where you will learn about structuring renewable energy projects, risk assessment and allocation in renewable and much more.
11-14 Nov 2013 (Johannesburg, South Africa)
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22-26 Jul 2013 (Nairobi, Kenya)
3-6 Feb 2014 (Accra, Ghana)
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10-12 Feb 2014 (Lagos, Nigeria)
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24-28 Jun 2013 (Lagos, Nigeria)
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2-5 Dec 2013 (Lagos, Nigeria)
1-4 Dec 2014 (Lagos, Nigeria)
A four day financial training course on Oil & Gas Project Finance where you will learn how suitable financial structures for oil, gas and electricity projects are created.
8-11 Oct 2013 (Nairobi, Kenya)
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2-4 Sep 2013 (Johannesburg, South Africa)
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5 Sep 2013 (Johannesburg, South Africa)
A 1-day course on Oil&Gas/LNG Project Finance. Industry fundamentals will be covered, together with the key metrics and due diligence issues alongside numerous case studies. International best practices will be delivered comprehensively.
6 Sep 2013 (Johannesburg, South Africa)
A 1-day on course Power Project Finance. Industry fundamentals will be covered, together with the key metrics and due diligence issues alongside numerous case studies. International best practices will be delivered comprehensively.
9 Sep 2013 (Johannesburg, South Africa)
A 1-day on course Infrastructure Project Finance. Industry fundamentals will be covered, together with the key metrics and due diligence issues alongside numerous case studies. International best practices will be delivered comprehensively.
10 Sep 2013 (Johannesburg, South Africa)
A 1-day course on Mining Project Finance. Industry fundamentals will be covered, together with the key metrics and due diligence issues alongside numerous case studies. International best practices will be delivered comprehensively.
11 Sep 2013 (Johannesburg, South Africa)
A 1-day course on Project-Finance Risk and Recovery, examining projects that have gone wrong, including a review of the credit factors/reasons why these deals would go wrong - incorrect 'project concepts'.
12-13 Sep 2013 (Johannesburg, South Africa)
A 2-day course on Building Project-Finance Models, looking at the key financial ratios and credit analysis as well as the forecast basis for any cashflow projection. This course is designed as a 'Build-your-own-model-from-scratch' with the final model used in a course bidding contest.