PPP in the Power Industry: Finance and Contracting Methods

Access funding for power infrastructure projects at optimum value by harnessing the private sector investment

Attend this three-day course to:

  • Learn how to structure a Public Private Partnership to develop financing strategies and profitable business cases
  • Review  best of breed funding models and financing arrangements for PPPs to ensure cost  recovery and financial sustainability
  • Determine critical success factors for getting the deal done
  • Understand risk and profit share mechanisms and measure their impacts on the project funding and economics
  • Obtain real world experience through case studies of actual projects to improve your decision makings on investment opportunities
  • Gain skills in project administration and financial analysis needed to efficiently manage a PPP

What is the programme about?

Delivering modern and reliable power infrastructure is essential to foster economic growth. With public budget facing constraints and access to funds being limited, public private partnerships have emerged as the alternative of financing large-scale power projects plans. Consequently, private investment is expected to significantly increase its current share of global investment in the power sector.
 
This intensive three-day training programme is a must-attend course that equips participants with the necessary knowledge of financing options and financial structures of public private partnerships. Delegates will gain expert and applied understanding of the how to ensure financial sustainability and find the optimal capital structure to bridge budgetary constraints and deliver the best value for money.

 

Power and utilities professionals who require an advanced understanding of current and emerging best practices of public private partnership project finance and investment strategy development related to infrastructure projects:

  • General Managers
  • Commercial Analysts
  • Finance Managers
  • Public Private Partnership (PPP) Specialists
  • Corporate Finance Consultants
  • Strategy, Planning & Portfolio Managers
  • Investment Advisors
  • Project and Project Finance Managers
  • Risk & Contracts Managers
  • Asset Managers
  • Business Development Managers

DAY ONE: PPP Project Concepts


Introduction and overview of PPP

  • Public Private Partnerships – objectives and outcomes
  • Overview of types of arrangements and deal structure (financial, legal, technical)
  • Scan of global PPPs with key lessons learned


Project inception

  • Governance, policy drivers and portfolio responsibilities
  • Project management
  • Use of external advisors
  • Identification of projects / feasibility assessments
  • Economic , financial and risk analysis
  • Due diligence


The project structure

  • Concessions
  • Long term leases and trade sales
  • Construction and operating agreements,
  • BOT, BOOT, Turn key, etc.

Interactive session and case study: Australian metro rail concession
Participants will take part in an interactive review and analysis of the Australian metro rail concession  to analyse concession models and discuss transferable lessons learned.


DAY TWO:  PPP Finance


Fundamentals of project finance

  • Cost of capital
  • Assessment of project
    • cost of debt and return on equity
    • Cost of capital for government vs private sector


Modelling techniques

  • Project costs
  • Value for money
  • Public sector comparators
  • Economic benefits

 

Interactive session and case study:
Mixed public / private ownership. Power generation and airports case studies
Participants will take part in an interactive and hands-on practice to simulate different ownership concepts and their economics.


Funding models

  • Commercial loans, bridge finance, bonds and other debt instruments
  • Subordinate loans and securitisation
  • Vendor financing
  • Sources of equity
  • Government support
  • Scan of global project finance deals

 

DAY THREE: PPP Agreements


Legal, financial and technical aspects of the agreement

  • Coverage, duration, responsibilities, etc
  • Pricing and payment mechanisms
  • Performance – payments and penalties
  • Price adjustment
  • Debt service, covenants, etc
  • Force majeure/termination

 

Interactive session and case study:  An African power purchase agreement
Delegates will take part in developing pricing mechanisms, off-take arrangements, risk allocations, penalty mechanisms,  to review the drafting of a power purchase agreement and practice notes on calculation of payments to be applied under the terms of the PPA.


Identification, mitigation and allocation of risks

  • Quantifying risk in project assessments
  • Mitigation of risks
  • Allocate and transfer of residual risks
  • The role of insurance, hedges, guarantees, etc
  • Contingent liabilities
     

Lessons learned – making the PPP work

  • Project planning, skills, and administrative support
  • Appropriate allocation of risks and fair return on investment
  • Regulatory enablers
  • Re-openers and periodic assessments
  • Governance, probity, ongoing project administration

 

Course Categories

Testimonials for our Courses

“Very positive Organisation.” 
 

Delivered by

With a focus on energy, utilities and infrastructure Steve has over 20 years’ experience in advis

Dates & Locations



This course is only available as a custom course tailored for your business, contact us to discuss your requirements.