PPP Project Finance & Infrastructure

2 days 12-13 Oct 2017, Hong Kong Hong Kong $3,350.00 Download brochure Add to basket
3 days 23-25 Oct 2017, London UK £3,845.00 + VAT* Download brochure Add to basket

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Overview

Two day course overview:

  • The origins of project finance and the subsequent development of the PPP framework
  • The benefits of using PPP structures vs traditional public procurement
  • How Government ensures Value for Money for taxpayers
  • How successful has the PPP programme been in developed and emerging markets?
  • What are the typical structures?
  • What are the main sources of debt, equity and other hybrid means of funding projects
  • How to determine whether a project should be funded in the domestic or offshore market
  • How do lenders assess the risks of a project and what measures do they take to mitigate these?
  • What to look for in project and financing documentation
  • How the approach to structuring varies by sector
  • The importance of cash and how to analyse the cashflow statements for a potential project
  • Why projects fail and how various stakeholders should respond

Three day course overview:

  • What are the investment options for Government?
    -
    Fund developments using the Government budget
    -
    Use private (equity & debt) capital, e.g. PPP
    -
    Privatise existing state public service utilities
  • What are the benefits (& dis-benefits) of using these options as a procurement mechanism?
  • How successful has privatisation been in delivering investments?
  • What are the funding options for power, infrastructure and PPP projects? How much debt? How much equity? Why?
  • Who are the key investors in such projects? Why?
  • What do investors seek, & what are their expectations and limits?
  • What do bank lenders require, & what constraints do they impose?
  • How best to attract capital markets (e.g. pension funds, life insurance companies and sovereign wealth funds) to such investments.
  • Which funding options best match specific project opportunities, & why?
  • What is the best recipe for success? Why have some projects failed? What have been the problems? Could they have been spotted earlier?
  • What has been the international experience across sectors?
  • How can failure be avoided? What steps should be taken in project preparation? How can political risk be mitigated?
  • What clauses are key in the underlying project documents to ensure success?
  • What role should Government take? Should they be a shareholder? What remedies are there when projects fail, or are faced with changing circumstances?


Supported by
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Who should attend

All professionals involved in infrastructure finance from across government and government agencies, project sponsors, contractors, financial institutions including multilaterals and export credit agencies, as well as consulting and advisory firms.

  • Head of Project Finance
  • Head of Corporate Finance
  • Head of Structured Finance
  • Treasurer
  • Project Manager
  • Accountant
  • Analyst
  • Sales Manager

Instructors

We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.

London
Cledan Mandri-Perrott
Dr Cledan Mandri-Perrott, is a seasoned project financier and investment banker. Having started his career in the operational arm of the second largest water company in the United Kingdom, and a FT100 company, he was critical in support of the international expansion of the Severn Trent Group helping secure highly profitable business for the company in Portugal, Belgium, Mexico, United States, Argentina, Chile and Trinidad and Tobago. For the latter he was part of the  acquisition team and went on to lead the company as its Director to successfully manage a business (serving over 1.2 million people) which achieved financial turnaround from a loss making entity (US$120 million deficit) in less than three years.

From there he established an advisory arm for the Severn Trent International Group and led a number of Public Private Partnerships (PPPs) advisory mandates growing it to an annual turnover of US$ 12 million. From there, Dr Mandri-Perrott worked as the co-head of the newly established Infrastructure Finance Group of the renowned PA Consulting Group in London and Birmingham, advising both private clients and governments on structuring and financing PPPs. From 2003 to 2005 he founded a boutique advisory firm with offices in Washington DC and Buenos Aires which focused on financial advisory services, dispute resolution and legal advice. During this time he grew the business to 29 staff. Notable clients during his tenure were the Prime Minister’s Office of the Hashemite Kingdom of Jordan, the ABB Group and Bilfinger Berger which he advised on three major acquisitions.

After selling the venture to his partners for family reasons, Dr Mandri-Perrott, joined the World Bank Group in 2006 and quickly rose to become a leading figure on PPPs and Project finance becoming a founding member of the World Bank’s Global PPP Expert Group. Since 2012, he was one of a handful of staff that opened the World Bank Group’s office in Singapore, where he now heads the Infrastructure Finance and PPP Centre advising governments on project finance issues bringing together public and private funds both from traditional commercial lenders as well as pension and institutional investors. In sum he has advised on more than twenty PPPs which successfully closed with a cumulative value of over US$4 billion. A graduate in Civil Engineering from Surrey University, he also holds an MSc in Business and Finance, an LLM in commercial and transaction law from the University of Dundee, and a PhD in Project Finance from the University of Groningen. He is a visiting professor at the National University of Singapore’s Lee Kwan Yew School of Public Policy, as well as the Singapore National University’s ALPINE programme.
Hong Kong
Richard Michael

The instructor is a banker with over 30 years’ experience in corporate banking, investment banking, trade finance and particularly infrastructure project finance which has been his focus for over 20 years. Richard has been based in Asia/Pacific for most of his career, having worked for various banks in Hong Kong, Singapore, Indonesia and Taiwan.

He has worked for Barclays, WestLB, Standard Chartered, DEPFA Bank plc and Indonesia Infrastructure Finance in a variety of roles, with experience across the region in arranging funding for major infrastructure projects as well as acting as a financial adviser to private sector developers and governments.

Venue

Hong Kong

4-5 Star Hotel in Hong Kong

All of our courses are held in 4 – 5 star hotels, chosen for their location, facilities and level of service. You can be assured of a comfortable, convenient learning environment throughout the duration of the course.

Due to the variation in delegate numbers, we will send confirmation of the venue to you approximately 2 weeks before the start of the course. Course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

London

Central London Hotel Venue

All courses are held at four or five star venues in Central London, Zone 1. We strive to provide you with a training environment of the highest quality, to ensure that the whole learning experience exceeds your expectations.

Your training venue will be confirmed by one of our course administrators approximately 3-4 weeks before the course start date.

Related Courses

Inhouse


 

Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. You could even save up to 50% on the cost of sending delegates to a public course.

To find out more about running this course in-house:





Our Tailored Learning Offering

If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. We'll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.

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We can offer any of our public courses delivered at your office or we can devise completely tailored solutions:


Read more about our offering or complete a call back request to speak to a learning specialist.

 

Agenda

Agendas are localised, please select your preferred location.

Day 1


Theme: The Fundamental Building Blocks of an Infrastructure Financing Transaction


Overview

  • Origins of Project Finance and the development of PPP/PFI
  • Key differences between project finance and corporate balance sheet financing
  • Key differences between public and private infrastructure funding
  • What are the key benefits of a limited recourse project finance structure?
  • Key Stakeholders in an infrastructure project finance transaction
  • Main terminology & acronyms used (PPP, IFI, IPP, etc.)
  • What is the state of the infrastructure project finance/ PPP market post-crisis?
  • What is the impact of Basel III on infrastructure project finance & PPP?


Funding Structures

  • Funding structures
  • Gearing
  • Viability Gap Funding
  • Availability vs Market Risk
  • Cross sector comparisons
  • Refinancing/Mini Perms
  • Syndications

Introduction to Infrastructure & PPPs

  • What is a PPP?
  • Value for Money
  • Balance sheet treatment
  • Advantages / disadvantages of PPPs in infrastructure
  • The tender process
  • Regional comparison of PPP programmes – lessons to be learned
  • Common problems arising in PPP projects


Risk Identification, Analysis & Mitigation

  • What are the key risks in infrastructure projects?
  • Identification of risk types
  • Social & Environmental risk
  • Assessment of the impact of risk
  • Creation of a risk matrix
  • Risk mitigation
  • Role of the capital market derivatives in risk mitigation
  • Role of insurance to mitigate risk: commercial, financial, political


Sources of Debt & Equity

  • Equity funds
  • Developers & investors
  • Private equity
  • Institutional Sources
  • Key issues for Investors
  • Commercial Bank Debt: availability, terms, conditions & key issues for lenders
  • Multilaterals
  • Export Credit Agencies
  • Grant Funding
  • Local market financing
  • Monoline Insurance
  • Project Bond market
  • Islamic funding


Project Appraisal

  • Cashflow models
  • Issues to look out for
  • DCF, NPV & IRRs
  • Criteria & Ratios used by lenders & investors to measure performance
  • Project documents: information memoranda, etc.
  • Role of financial advisor & other consultants
  • Due diligence
  • Cashflow & Term Sheet Exercises
  • Course participants will be invited to discuss a project cashflow and term sheet to identify key issues

Day 2

Theme 1: Typical Documentation

Project Documents

  • EPC / construction contracts
  • Operations & maintenance contracts
  • Supply contracts
  • Sales/Offtake contracts
  • Shareholders’ agreements
  • PPP concession agreements


Finance Documents

  • Loan agreements: typical covenants
  • Direct (or Tripartite) Agreements
  • Security Agreements


Theme 2: Case Studies

Case Studies from a variety of developed and emerging markets and sectors. Why have some projects succeeded, whereas others have failed? Lessons from each will be identified and noted

Port Project, Hong Kong
Toll Road Project, Philippines
Port Project, Vietnam
Toll Road Project, Indonesia
Toll Road Project, Australia
Various Projects, Korea

Participants will conduct a Credit Committee exercise in teams, whereby each team will present a case for a project currently in the market to be judged by the other teams.

 

 

Day 1

 
Theme: the essential components which make up an infrastructure Project Finance / PPP deal
Overview 

  • Characteristics of infrastructure projects: public vs private 
  • Key players in an infrastructure project finance transaction 
  • Terminology & acronyms used (PPP, IFI, IPP, etc.) 
  • Origins & recent history of privatisations, project finance & PPP in infrastructure 
  • How are project financings initiated? What steps have to be taken? 
  • What is the state of the infrastructure project finance / PPP market post-the financial crisis? 
  • What is the impact of Basel III on infrastructure project finance & PPP?

Funding Structures 

  • Conventional government-backed loan security vs project finance/PPP structures: advantages/disadvantages 
  • Funding structures & proportions of debt & equity 
  • Cross-sector comparisons

 
Introduction to infrastructure & Public Services Project Finance Concessions(PPP): 

  • What is PPP: why the recent interest? 
  • The choices for government: public sector comparators & value for money analysis 
  • On/off balance sheet: rationale, issues & criteria for PPPs 
  • Advantages / disadvantages of PPPs in infrastructure 
  • The bid process & PPPs 
  • Common problems arising in PPP projects

Risk Identification & Analysis 

  • What is risk? Why are lenders risk averse? 
  • Identification of risk types 
  • Environmental risks: EQUATOR Principles 
  • Evaluation of the impacts of risk 
  • Creation of a risk matrix 
  • Risk mitigation: how can risk be mitigated and controlled, e.g. political risk? 
  • Role of the capital market derivatives in risk mitigation 
  • Role of insurance to mitigate risk: commercial, financial, political

Sources of Debt & Equity 

  • Equity funds: their requirements & expectations 
  • Developers & investors 
  • Private equity & SWF’s 
  • Pension funds & life insurance companies 
  • Key issues for Investors 
  • Privatisations of public services: how are they funded? 
  • Debt: availability, terms, conditions & key issues for lenders: 
  • Development bank funding 
  • Export credits 
  • Commercial loans & term sheet 
  • The bond markets: how they work & what are ratings 
  • Islamic funding 
  • Miscellaneous sources: offsets, leasing & barter

Project Appraisal & Bid Process 

  • Cash-flow models: how to structure a model. What measures to calculate 
  • Issues to look out for 
  • DCF, NPV & IRR: what do they mean? 
  • Criteria & Ratios used by lenders & investors to measure performance 
  • Project documents: information memoranda, etc. 
  • Role of financial advisor & other consultants 
  • Due diligence: what is it? Who pays?

Cash-flow & Term Sheet Exercises
Course participants will be invited to discuss a project cash-flow and term sheet to identify key issues

Day 2

 
Theme 1: (a) what contract documents are required, and (b) what are the key clauses?
Project Documents: Project Finance & PPP Concessions 

  • EPC / construction contract 
  • Operations & maintenance contract 
  • Supplies contract 
  • Sales contract 
  • Loan agreement: typical loan covenants 
  • Shareholders agreement 
  • PPP concession agreement

Theme 2: what has been the experience of Project Finance / PPP in the power sector?
Real-life Case Histories from developed and/or emerging markets worldwide will be taken and discussed for a range of projects in all the sectors mentioned below. Why have some succeeded, whereas others have failed? Is privatisation a realistic option? Lessons from each will be identified and noted.

Thermal power (oil, gas, coal, nuclear) 

  • Coal-fired power station, Central Europe 
  • An IWPP in the UAE 
  • Marine diesel plant in Togo 
  • Nuclear power projects 

 Hydropower (large & mini-) 

  • Large hydro IPPs in S. America & Turkey 
  • Mini-hydro C. Europe 

Power transmission & distribution: the issues & problems. How to harness private capital
Renewable energy
 

  • Wind power project, Cen. Europe 
  • Solar power, Spain 
  • Biomass plant, Mauritius
Day 3

 
Theme: what has been the experience of Project Finance / PPP in the transport sector?
Real-life Case Histories from developed and/or emerging markets worldwide will be taken and discussed for a range of projects in all the sectors mentioned below. Why have some succeeded, whereas others have failed? Is privatisation an option? Lessons from each will be identified and noted.


Roads 

  • M6 Toll, UK 
  • M1/M15, Hungary 
  • R1, Slovakia 
  • Bina Istra, Croatia 
  • Toll-road model in Chile 
  • N1/N4 Platinum Highway, S. Africa 
  • Lekki Expressway, Nigeria 

 Bridges & tunnels 

  • Dartford bridge, UK 
  • Milau viaduct, France 
  • Channel tunnel / Eurotunnel 
  • Oresund bridge, Sweden - Denmark 

 Railways & Metros 

  • TGV PPPs, France 
  • Rift valley railway, Kenya – Uganda 
  • Hong Kong mass transit 
  • Caracas Metro, Venezuela 
  • London Underground PPP 
  • CroydonTramlink 
  • Dubai Metro 

 Ports & airports 

  • Spata airport, Athens 
  • Tirana airport, Albania 
  • Quito airport, Ecuador 
  • Gdansk port, Poland 
  • Air traffic control: NavCanada
  • Private Investment in the Municipal and Public Accommodation Sectors 

 Hospitals 

  • West Middlesex & UCH, London; Braga, Portugal 
  • Schools 
  • Argyll & Bute, Scotland 
  • Prisons 
  • Fazakerley, UK 

 Govt. & office buildings 

  • HM Treasury Building, UK; Mapeley STEPS, UK 
  • Water treatment plants 
  • Seafield, Scotland; Muharreq, Bahrain

 
Waste management 

  • Manchester PPP, UK 

 Stadiums 

  • Wembley Stadium; Lille Stadium, France 

 Telecommunications 

  • Broadband PPP, Bucharest


 

Why us


We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product