Project Finance 2 – Commercial and Financial Structuring (Focus on PPP Subsegment)

R5,600.00

This course follows on from our Introduction to Project Finance module. Whilst it is not necessary to attend the Introductory course first, it is advisable. We will examine some of the financial-structuring issues likely to arise once the commercial fundamentals and risks of the project have been reviewed as set out in the 1st module. 

This course will teach you everything you need to know about financial structuring of Public Private Partnerships (PPPs). You will learn how the different elements of the financial jigsaw are fitted together to create a financing plan, and how to pitch your financing plan perfectly to potential sponsors.

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Description

PROJECT FINANCE 2 – COMMERCIAL AND FINANCIAL STRUCTURING (FOCUS ON PPP SUBSEGMENT)

 

COURSE OVERVIEW

This course follows on from our Introduction to Project Finance module. Whilst it is not necessary to attend the Introductory course first, it is advisable. We will examine some of the financial-structuring issues likely to arise once the commercial fundamentals and risks of the project have been reviewed as set out in the 1st module. 

This course will teach you everything you need to know about financial structuring of Public Private Partnerships (PPPs). You will learn how the different elements of the financial jigsaw are fitted together to create a financing plan, and how to pitch your financing plan perfectly to potential sponsors.

 

BENEFITS OF ATTENDING

By the end, you’ll have the ability to understand the various elements that create a PPP, and to build a solid financing plan that maximizes your financial benefits while minimizing costs. 

 

COURSE OUTCOMES

  • Gain an understanding of financial analysis, procurement and investment in PPPs, by both public and private sector.
  • Learn about financial structuring of large infrastructure projects
  • Understand the procedures and techniques for raising funding

 

COURSE OBJECTIVE

Upon completion of this program, the attendee will be better able to: 

  • Understand commercial feasibility and financial structuring of a payment mechanism in Public Private Partnerships 
  • Define various terms and describe the necessary steps to reach successful commercial feasibility
  • Apply knowledge to create Value for Money Analysis
  • Understand different types of payment mechanism
  • Understand different Revenue Regimes in PPPs
  • Understand risks and their application in structuring commercial and financial feasibility

 

COURSE OUTLINE

Pillar 1: Overview of Commercial Feasibility
  • Designing the Technical Requirements
  • Project Design & Construction Requirements 
  • Performance Requirements & Operations and Maintenance Specifications
  • Other Technical Assessment-Related Matters and Preparatory Activities
  • Consideration of Risk in the Commercial Feasibility
  • Estimating Risk-Adjusted Costs
  • Key Points on Project Scope, Technical Requirements and Cost Assessment
Pillar 2: Preliminary Structure of the Financial Mechanism
  • Designing a Preliminary Structure of the Financial Mechanism 
  • Revenue Regime
  • Payment Mechanism
  • Preliminary Risk Allocation
  • Developing the Financial Model
  • Sources of Information
  • Macroeconomic Assumptions
  • Estimates of Capital Expenditures
  • Operating Costs and Reinvestments
Pillar 3: Financial Structure of the Project Company
  • Alternatives to Commercial Banks
  • Revenues
  • Accounting Issues
  • Issues Considered in Defining the Contract Term
  • Cash Flow
  • Base Case, Sensitivities and Scenarios
Pillar 4: Assessing the technical and commercial feasibilities
  • Assessing the Technical Feasibility
  • Technical Risks Associated with Infrastructure Initiatives
  • Assessing the Commercial Feasibility
  • Commercial Feasibility – Lenders’ Perspective
  • Commercial Feasibility – Investors’ Perspective
  • Factors that Affect Required Rate of Return
  • Other Decision Drivers for Investors Analysing a Project’s Cash Flow
  • Assessing Commercial Feasibility
  • Outputs of the Commercial Feasibility Assessment
  • Assessing Fiscal Feasibility
Pillar 5: Value for Money
  • Value for Money Assessment
  • Quantitative Value for Money Analysis
Pillar 6: Financial Structuring
  • Financial Structuring (from the Public Perspective)
  • Co-Financing
  • Grant Financing 
  • Contract Development
  • Hard or Soft Public Agency Loans
  • Equity Participation by the Government
  • Other Ways to Increase Financial Feasibility and Affordability
Pillar 7: Revenue Regimes in PPPs
  • User-Pays Financial Structuring Matters
  • Volume-Linked Payment Mechanisms
  • Performance Correction
  • Calibrating the Payment Mechanism
  • Composition of the Payment in a Unitary Payment and Time Pro Rata
  • Indexing the Payment
  • Frequency of Payments and the Payment Calculation Process
Pillar 8: Dealing with Risks
  • Risk Allocation versus Risk Structuring 
  • Risk Strategy – Public & Private Perspective
  • Risk Matrix
  • Quantitative Assessment and Appraisal
  • Mitigation Measures
  • Deciding on Risk Allocation  
  • Contractual Categories of Risks
  • Risks During the Design and Construction Phase
  • Risks During the Operating Phase
  • Calculating the Compensation

 

WHO SHOULD ATTEND?

Government and real estate officials, developers, architects, contractors, consultants, attorneys, engineers, and other professionals involved in the public/private finance, development, & construction. 

 

PREREQUISITES:

Introduction to Project Finance Module / Basic understanding of PPP framework

 

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Course Name: Project Finance 2 – Commercial and Financial Structuring (Focus on PPP Subsegment)

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