PPP Infrastructure Finance Training Course

Participants can select revenue and payment mechanisms suited to project demand and public-policy objectives.

• Availability-payment mechanisms link deductions to asset and service performance
• User-pay concessions allocate demand risk through tariffs, tolls, or fees
• Hybrid revenue structures combine public payments with third-party customer revenues
• Minimum revenue guarantees shift defined demand downside to government
• Tariff-setting formulas address inflation, affordability, indexation, and regulatory approval
• Payment deductions calibrated through performance indicators, cure periods, and caps
• Revenue forecasts tested against demand elasticity, competition, and service alternatives

Participants can develop a risk allocation that supports public value and lender confidence.

• Risk matrix assigns ownership to the party controlling probability and impact
• Construction risk covers design errors, cost overruns, delays, and interface failures
• Demand risk assessed using traffic, consumption, occupancy, and willingness-to-pay evidence
• Operating risk includes lifecycle costs, performance failures, and maintenance obligations
• Change-in-law clauses distinguish general, discriminatory, and specific legal changes
• Force-majeure provisions allocate relief, compensation, termination, and insurance recoveries
• Lender step-in rights protect continuity after serious private-partner default

Participants can interpret project finance cash flows and the main drivers of financial viability.

• Project finance relies primarily on contracted project cash flows
• Sources-and-uses schedule reconciles construction costs, fees, reserves, and funding
• Operating model forecasts revenues, operating expenditure, maintenance, and lifecycle renewals
• Cash flow waterfall prioritises taxes, operating costs, debt service, reserves, distributions
• Debt-service reserve accounts protect scheduled repayments during temporary cash shortfalls
• Base-case assumptions documented through model inputs, sources, and approval controls
• Scenario analysis isolates consequences of delay, inflation, demand, and cost changes

Participants can assess debt capacity, lender requirements and financing terms for PPP projects.

• DSCR measures cash available for debt service against scheduled debt payments
• LLCR compares discounted project cash flows with outstanding debt balance
• Debt sculpting aligns repayment profiles with forecast cash available for debt service
• Interest-rate structures compare fixed, floating, hedged, and inflation-linked debt
• Credit committees assess contract strength, sponsor support, and downside resilience
• Security packages include project assets, shares, accounts, assignments, and insurances
• Direct agreements define lender notice, cure, substitution, and step-in arrangements

Participants can evaluate equity returns and investor considerations within a PPP capital structure.

• Equity sponsors accept residual risk after operating costs and debt service
• Equity IRR calculated from invested capital, distributions, and exit proceeds
• NPV analysis compares discounted returns against required investor hurdle rates
• Sponsor return expectations reflect construction risk, country risk, and liquidity
• Dividend lock-up provisions restrict distributions following covenant breach or default
• Refinancing gains shared through contractual formulas between authority and private partner
• Exit strategies consider share transfers, lock-up periods, and consent requirements

Participants can evaluate PPP affordability, fiscal risk and value-for-money evidence for public approval.

• Affordability analysis matches payment commitments against multiyear budget ceilings
• Public-sector comparator estimates risk-adjusted conventional procurement lifecycle costs
• Value-for-money assessment compares service outcomes, risk transfer, costs, and flexibility
• Contingent liabilities arise from guarantees, termination payments, and revenue support
• PFRAM identifies fiscal exposures under adverse project and macroeconomic scenarios
• Termination-payment formulas determine public liabilities following contract failure
• Budget disclosure tracks committed payments, guarantees, and material fiscal risks

Participants can identify when concessional and development finance can improve project viability.

• Blended finance combines public, commercial, philanthropic, and development capital
• Development finance institutions provide loans, guarantees, political-risk insurance, and equity
• Viability-gap funding addresses justified capital shortfalls without distorting incentives
• Credit enhancement improves debt terms through guarantees, subordinated capital, or reserves
• Political-risk insurance addresses expropriation, transfer restrictions, and political violence
• Climate finance supports eligible mitigation, adaptation, resilience, and emissions-reduction investments
• Concessionality assessed against additionality, market distortion, and public-value criteria

Participants can align PPP procurement stages with the information and commitments required by financiers.

• Market sounding tests investor appetite, risk concerns, and financing capacity
• Request-for-qualification criteria screen technical capability, financial strength, and relevant experience
• Bid evaluation separates technical quality, commercial terms, and financial credibility
• Financial model audit checks formulas, assumptions, consistency, and model integrity
• Conditions precedent govern permits, land rights, approvals, insurance, and funding
• Financial close occurs when financing documents become effective and funds become available
• Bidder dialogue manages clarifications without compromising procurement transparency or competition

Participants can monitor financial performance and plan informed interventions during the concession period.

• Contract-management dashboards track service levels, deductions, payments, and dispute trends
• Early-warning indicators identify covenant pressure, cost escalation, and construction delay
• Independent engineer reports test progress, quality, completion, and payment milestones
• Renegotiation protocols document triggers, options appraisal, approvals, and public disclosure
• Refinancing reviews assess savings, risk changes, fees, and gain-sharing obligations
• Portfolio reporting aggregates payment commitments, contingent liabilities, and project performance
• Application plan prioritises finance actions for a current PPP opportunity