Infrastructure Finance Masterclass Detailed Outline

 

 

 

1. Introduction to Project Finance

  • Basic principles of project finance
  • Why use project finance
  • Use of SPVs
  • Project finance versus corporate finance
  • Application to PPPs

2. How does Government Work

  • Roles of Parliament, Cabinet, Ministers and Agencies
  • State/Commonwealth funding
  • Role of PPPs

3. Business Cases

  • Distinction between economic and social infrastructure
  • Distinction between economic and financial viability
  • Distinction between funding and financing
  • Content of business case
  • Inclusion of wider economic benefits?

4. Procurement Strategy/Workshop

  • Overview of procurement methods
  • Procurement strategy
  • Market soundings

5. Risk Allocation

  • Approach to risk management
  • Management of risk by the private sector
  • Sharing risk with Government
  • What has gone wrong in practice

6. Commercial Structuring

  • Project contractual structures
  • Role of SPV, Government, Contractor, Operator, Financiers
  • Commercial Term Sheets
  • Structure of Project Deeds
  • Assessment of Key Commercial Clauses
  • Development of Payment Mechanisms

7. Financial Structuring

  • Development of Finance Plans
  • Arranging Debt and Negotiating Term Sheets
  • Sourcing Equity
  • Role of Financial Sponsors
  • Involvement of Super Funds

8. Tendering Process

  • Tender process
  • EOI/RFP
  • Evaluation
  • Use of public sector comparator

9. Evolution of PPPs

  • Infrastructure financing trends and evolution of PPPs
  • Alternative Hybrid Funding Models
  • Value Capture

10. PPPs in Practice

  • Due Diligence
  • Operational Issues
  • Benchmarking
  • Refinancing