Project Finance Workshop

4 days 13-16 Jun 2016, Sao Paulo $6,330.00 Download brochure Add to basket

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Overview

This  training course will provide you with an intensive overview of the core principles and practice of project finance. You will gain a greater appreciation of 'project pitfalls' as well as grasp a thorough understanding of the crucial factors and techniques used in structuring project financings.

How will this project finance training course assist you?

This 4-day Project Finance training course will provide you with the skills and knowledge to:

  • Better structure your project finance deals
  • Comprehend the uses and abuses of financial modelling i.e forecasts vs. reality
  • Understand essential credit issues in assessing project finance proposals
  • Get to grips with funding choices and capital structuring issues
  • Gain the perspective of the equity investor
  • Understand risk allocation and mitigation
  • Understand corporate distress and implications for project finance

Who should attend?

Using a core case study and other examples of the use of Project Finance this hands on workshop is designed for personnel involved in project procurement, development and construction, investment, financial and technical appraisal and financial structuring and ongoing project management for large scale projects working for;

  • Project developers and investors
  • Construction companies
  • Government and other Public Sector Agencies
  • Equipment suppliers
  • Commercial Banks
  • Investment banks
  • Development Finance Institutions
  • Export Credit Agencies
  • Infrastructure Funds
  • Accountancy firms
  • Law firms
  • Financial advisors and consultancy firms
  • Infrastructure specialists


Participant existing pre-requisites

Although limited practical Project Finance experience has been assumed, to obtain maximum benefit from this training programme participants should already be familiar with the core aspects of:-

  • Corporate financial analysis techniques
  • The main functions in Excel
  • The principal banking and Capital Markets debt products
  • Investment appraisal techniques ( e.g. IRR, NPV) and the fundamental principles of company valuation
  • Banking documentation


Supported By:

 

Who should attend

This course has been designed for Government officials and  bank and private sector officials engaged in project finance and PPP and concessions, including:

  • Project finance professionals and other practitioners involved in project finance transactions
  • Government/PPP Agencies, Sector Ministries, Concedente Authorities and and Public Service Regulatros 
  • Bankers/Investment Bankers, IFIs,   Credit Analysts and Financial Advisors
  • Sponsors/Project Joint Venturers Business Developers
  • Lawyers in banking, corporate or infrastructure and other PF/PPP technical consultants
  • Officials from Public Sector  Concedente Authorities
  • Investment/Portfolio Managers

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.

Sao Paulo

Mariana Abrantes received a BA in Economics from the University of California at Berkeley and an MPA from Princeton University.  She has 25 years credit management experience with The Chase Manhattan Bank, the European Investment Bank, Banco Português do Atlântico and ABN AMRO (Portugal), including credit workout experience during the Latin American debt crisis. She served 4 years as Financial Controller in the Portuguese Transport and Health ministries, reporting to the Minister of Finance. Currently, she is serving as member of the board and finance committee of an international fairtrade certification company, and as member of the board and credit committee of the Infrastructure Crisis Facility Debt Pool, and infrastructure fund which is part of PIDG-Private Infrastructure Development Group.  She has worked for over10 years as an independent financial consultant and PPP specialist on studies for McKinsey International, the EC, EBRD, AfDB, WBI, IMF and USAID, in providing high-level advice to governments concerning the procurement of public infrastructure and services through PPP as well as the organizational implications of creation of PPP agencies, budgeting for PPP liabilities optimizing the coordination between the various functions of the State - Concedent, regulator, budgetary authorities, inspection and auditing.  She has worked in the US, Portugal, Germany, the Netherlands, Spain, Luxembourg, Brazil, Mexico and Argentina, and has had project and workshop assignments in Greece, Romania, Bulgaria, Turkey, Slovenia, Syria, Angola, Mozambique and Burkina Faso ,Kenya, Kazakshtan and Peru.  She co-authored a manual on sources of project financing for PALOP Lusophone countries, as well as articles on “Managing PPPs for budget sustainability”. She teaches a course in Project Finance at the Nova School of Business and Economics, Lisboa

 

Venue

Sao Paulo

Sao Paulo

This program takes place on a non-residential basis at a central Sao Paulo hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the program. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

Related Courses

Agenda

Day 1  

The fundamentals of project finance

  • What is project finance, and how is it used, in industrial and in public infrastructure sectors (PPP)
  • How is  limited recourse project finance distinct from other forms of finance and public sector procurement in infrastructure and public services
  • Typical project finance contractual structures and Parties involved in project finance and PPP transactions
  • The Project Cycle in PPP public private partnerships

Case studies: Analysing project formulation, project parties and contractual structures in various sectors such as power, public services and mining

The fundamentals of cash flow forecasting and project financial analysis and valuation

  • Financial statement and cash flow analysis, cost of capital and discount rates, discounted cash flows and basic valuation mechanics
  • Project economics and cash flow dynamics, demand and capacity utilization as revenue and cost drivers, break-even levels
  • Quantifying project risks and returns with scenario analysis 
  • Financing structure, debt capacity, debt sizing and debt amortization schedules 
  • Exercises:  Calculating NPV Net Present Values and financial ratios

Day 2


Determining project financial structures, and risk allocations

  • Cash flow lending rationale (purpose/payback) and financing criteria     
  • Debt coverage ratios and their uses, for SPC, seniority, protection and control
  • From feasibility to bankability: combining user tariffs with grants and taxpayer subsidies 
  • Setting (and uses of) loan covenants and application of available cash flow  (waterfall/cascade)
  • Project risk analysis and risk management principles and strategies, including risk transfer, insurance, hedging and risk pricing
  • The sources of project funding and the role of the multilateral institutions
  • Governments’, Sponsors’ perspective,  Banks’ perspective

Cases study:  Identifying the sources of funding and understanding investor requirements and lending criteria

The importance of legal and regulatory frameworks

  • The project cycle and legal framework for PPPs 
  • Legal, regulatory and contractual considerations in contract design, seniority, protection and control
  • Tender specifications, payment mechanisms, availability payments, affordability and willingness to pay user fees
  • Procurement procedures and risks bidding strategies
  • Public sector comparator and evaluation of Value for Money in the PPP option
  • Key contractual clauses, conditions precedent, covenants, events of default
  • The purpose of Direct agreement and “step-in rights”
  • Credit enhancements and third party / external guarantees, ECA/MIGA
  • Inter-creditor issues and the role of “controlling creditor”

Case study and role play

Day 3


Managing PF/PPP contracts for sustainability over contract life

  • Maintaining Value for Money and SPC Seniority, Protection and Control 
  • The role of public service regulators
  • Causes and consequences of project distress
  • Dealing with stranded, stalled and distressed projects and restructurings
  • Re-pricing of (impaired) PF/PPP assets

Case study: Exploring the options in the key problem areas

Planning and carrying out efficient renegotiations

  • Incomplete contracts, negotiating tactics and strategies, strategic behaviour
  • Restructuring and  renegotiation experiences with or without changes in risk allocation
  • Rebalancing of concession contracts and impact on the maintenance of Value for Money
  • Conflict resolution and arbitration 
  • Disclosure and transparency guidelines

Case study and role play: Exploring the interests and negotiating strategies of the Parties

Day 4


PPP  and Infrastructure as an investment asset class

  • Project financing trends in various sectors (water, waste, airports, hospitals, schools, shopping centers  and commercial properties, mining, etc)
  • Heterogeneous investment characteristics
  • Long-term, inflation-indexed, “bond proxies”
  • Risk-return and asset pricing and valuation in greenfield versus mature projects
  • Project risk versus counterparty risk, including  sovereign risk and budget sustainability
  • Pension funds with regulated investments and rating criteria versus specialist funds
  • Trends in bank lending and project bods 

Case study:  The role of infrastructure funds

The infrastructure challenge:  Government’s perspective

  • Long term demand forecasting and short term optimism bias
  • Attracting qualified bidders and long term creditors
  • Integrating of PPP procurement and budget procedures for PPP liabilities
  • PPP liabilities as contingent public debt PPPs and sovereign rating
  • Optimising public investment management, PPP pipeline and contract portfolio 

Course summary and close

“A recent study prepared by the IMF Fiscal Affairs Department finds that the average country loses one-third of the potential benefits from public investment because of inefficiencies in the way they are managed.”

 

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