PPP Project Finance and Contracts Training Course

Participants can assess whether a proposed PPP is feasible, affordable and likely to offer value for money.

• Strategic case tests for service need and policy alignment
• Affordability analysis using lifecycle costs and committed payment profiles
• Public Sector Comparator assumptions and risk-adjusted cost comparison
• Value-for-money assessment using qualitative and quantitative decision criteria
• Fiscal commitments, contingent liabilities and budget approval requirements
• Sensitivity testing for inflation, demand, exchange rates and interest rates

Participants can produce a risk allocation approach that assigns each risk to the party best able to manage it.

• Risk breakdown structure covering development, construction and operating exposures
• Risk allocation matrix assigning ownership, mitigation and compensation events
• Construction completion risk, interface risk and latent site conditions
• Demand risk, revenue risk and payment certainty distinctions
• Political force majeure, change in law and regulatory risk
• ISO 31000 treatment options applied to PPP risk registers

Participants can explain how project finance structures convert project cash flows into debt capacity.

• Special purpose vehicle structure and limited-recourse financing principles
• Sources and uses schedule for construction and financing costs
• Equity, senior debt, subordinated debt and shareholder loan roles
• Cash flow waterfall from revenues through operating costs
• Debt service coverage ratio and loan life coverage ratio
• Reserve accounts, distribution lock-ups and cash sweep mechanisms

Participants can interpret core PPP financial-model outputs and challenge key financing assumptions.

• Model structure linking assumptions, calculations, statements and outputs
• Debt sizing using DSCR, LLCR and minimum reserve requirements
• Internal rate of return and equity return calculations
• Base case, downside case and sensitivity case interpretation
• Inflation indexation assumptions within revenues and operating expenditure
• Refinancing gains, refinancing risk and sharing provisions

Participants can select and assess payment mechanisms that support service outcomes and financeability.

• Availability payments linked to asset readiness and service performance
• User-charge concessions with tariff rules and demand assumptions
• Unitary charge calculation, indexation and payment timing provisions
• Performance deductions for unavailability, quality failures and response delays
• Revenue support mechanisms including minimum revenue guarantees
• Payment certification procedures, invoice disputes and withholding rights

Participants can review the agreement suite and identify provisions required for a financeable PPP transaction.

• Project agreement obligations, outputs, standards and performance requirements
• EPC contract interfaces with completion tests and liquidated damages
• Operations and maintenance agreement responsibilities and lifecycle obligations
• Direct agreement protections for lenders and public authorities
• Security package including share pledges, assignments and account charges
• Conditions precedent checklist for financing documents and project agreements

Participants can link procurement decisions to competitive tension, bankability and financial-close readiness.

• Prequalification criteria assessing technical, financial and delivery capability
• Request for proposals structure, data room controls and bidder questions
• Bid evaluation methodology separating compliance, quality and financial assessment
• Competitive dialogue controls for complex or uncertain project solutions
• Preferred bidder negotiations without undermining procurement fairness
• Financial close deliverables, legal opinions and funding conditions

Participants can manage contract changes and performance issues without weakening the original risk allocation.

• Contract management plan linking obligations, dates, evidence and owners
• Key performance indicators, monitoring reports and payment verification
• Variation procedure for scope changes, pricing and time impacts
• Relief events, compensation events and force majeure distinctions
• Dispute escalation through negotiation, expert determination and arbitration
• Lender step-in rights during persistent contractor default

Participants can assess end-of-contract scenarios and prepare a focused plan for their PPP responsibilities.

• Termination triggers for authority default, contractor default and force majeure
• Compensation calculations under different termination payment regimes
• Asset handback standards, surveys and lifecycle fund requirements
• Expiry planning for service continuity and transfer arrangements
• Lessons-learned review using procurement, finance and performance evidence
• Personal application plan for immediate PPP project priorities