Project Finance Training Course

Participants can assess whether a proposed project has a credible economic, commercial and financial case.

• Screen projects through socioeconomic appraisal, affordability, and value-for-money tests
• Demand forecasting assumptions, willingness-to-pay evidence, and revenue sensitivity
• Define the project boundary, reference case, and base-case assumptions
• Apply discounted cash flow methods to project and public-sector appraisals
• Compare net present value, internal rate of return, and benefit-cost ratio
• Separate financial viability from economic viability and fiscal affordability
• Identify contingent liabilities arising from guarantees, termination payments, and revenue support

Participants can allocate project risks to the parties best able to manage and price them.

• Allocate construction, demand, operations, financing, and political risks contractually
• Build a risk register with probability, impact, owner, mitigation, and residual risk
• Use risk matrices to distinguish retained, transferred, shared, and insured exposures
• Price risk transfer through contingencies, insurance premiums, and required returns
• Assess force majeure, change-in-law, and relief-event provisions
• Link risk allocation to payment mechanisms and lender due diligence

Participants can structure procurement decisions and evaluate bids against financial and delivery criteria.

• Select PPP procurement routes using project complexity and market-capacity criteria
• Prepare prequalification criteria covering technical capacity, finance, and delivery record
• Structure request-for-proposals documents, bid instructions, and evaluation rules
• Evaluate bids through weighted scoring, affordability checks, and clarification protocols
• Manage competitive dialogue, direct negotiation, and unsolicited proposal safeguards
• Document procurement decisions through audit trails and probity controls

Participants can review core project agreements for provisions that determine cash flow and lender confidence.

• Interpret concession, availability-based, and build-operate-transfer agreement structures
• Align direct agreements, step-in rights, and security assignments
• Draft payment mechanism provisions for deductions, indexation, and performance measurement
• Analyse termination payment formulas under default, force majeure, and authority convenience
• Set change-control procedures, variation pricing, and dispute-resolution escalation
• Reconcile contract obligations with the financial model and risk register

Participants can interpret and test an integrated project finance model for cash flow, debt service and returns.

• Construct sources-and-uses schedules for development, construction, and financing costs
• Model operating revenues, operating costs, taxes, and working capital
• Build integrated profit-and-loss, cash-flow, and balance-sheet statements
• Calculate debt service coverage ratio, loan life coverage ratio, and project IRR
• Schedule drawdowns, interest during construction, repayment profiles, and reserve accounts
• Audit model logic using balance checks, flags, and assumption controls

Participants can assess financing sources, debt terms, security arrangements and lender due-diligence requirements.

• Compare sponsor equity, senior debt, mezzanine debt, bonds, and grants
• Assess debt sizing using DSCR, LLCR, debt tenor, and gearing limits
• Explain lender due diligence across technical, legal, insurance, and environmental workstreams
• Structure security packages, cash sweeps, lock-up tests, and reserve accounts
• Evaluate fixed-rate, floating-rate, inflation-linked, and currency financing exposures
• Recognise development finance institution roles, guarantees, and political-risk insurance

Participants can evaluate project returns and identify the assumptions most likely to affect investment decisions.

• Estimate weighted average cost of capital from debt pricing and equity returns
• Calculate equity IRR, project IRR, NPV, and payback period
• Test sensitivities for construction delay, cost overrun, demand, and inflation
• Build scenario cases for downside, base, and upside assumptions
• Apply break-even analysis to tariffs, availability payments, and debt covenants
• Present investment committee findings with assumptions, outputs, and decision points

Participants can monitor public-sector obligations and manage financial risks throughout the operating term.

• Measure fiscal commitments from availability payments, guarantees, and termination obligations
• Apply IMF PPP Fiscal Risk Assessment Model concepts to contingent liabilities
• Assess budget affordability using multi-year expenditure ceilings and payment profiles
• Account for PPP obligations using IPSAS 32 service concession guidance
• Design contract-management dashboards for service levels, deductions, and lifecycle obligations
• Plan refinancing, handback, asset-condition surveys, and end-of-term transitions
• Escalate performance disputes through contract notices, negotiation, and adjudication

Participants can prepare a practical review plan for financial close, construction monitoring and operational oversight.

• Coordinate conditions precedent, financial close deliverables, and funding drawdown readiness
• Track construction milestones, independent engineer certificates, and completion tests
• Monitor covenant compliance, reserve accounts, distributions, and lender reporting
• Manage variations, claims, refinancing proposals, and material adverse events
• Prepare a project finance review plan for an active opportunity
• Define escalation triggers, governance forums, and decision deadlines