Overview

According the World Economic Forum, over US$ 2 trillion dollars are needed every year for the next decade for global infrastructure investment in energy, water, transportation, telecommunications, mining, and municipal service delivery.  This works out annually to over $400 billion for Africa, $500 billion for Asia, $500 billion for Europe, $300 billion for South/Central America, and $300 billion for North America.  With such large amounts of money, several key issues arise:

• How will this infrastructure be financed?
• How will opportunities make their way through the appropriate screening, risk assessment, and financial modeling analyses to determine financial viability? 
• Who is positioned in government ministries and agencies, PPP units, banks, and project developers to conduct this important work?
• What type of person has the breadth and depth for the required skills?

To meet these global financing demands, the pressure to introduce sophisticated project finance business models  will challenge government, regulatory, and banking analysts who may not have formal training in the special strategic and financial characteristics of the project finance model. Upgrading these strategic and technical skills is urgently needed to meet these new business and investment opportunities. 

For these reasons, the Institute for Public-Private Partnerships (IP3) offers a Certified Project Finance Specialist™ Certification Program to provide a core body of knowledge in Project Finance. The goal of this professional certification program is to create a world class standard in project finance skills development and to provide participants who complete the requirements of the program with a comprehensive and internationally recognized body of knowledge and professional certification designation in Project Finance.


The Challenge - Understanding and Utilizing Project Finance
Project finance investment opportunities depend on the project cash flow and rely on sophisticated financial modeling and business structures to create the capital structure of the project company.  These structures are not widely used yet in many countries, but will become more prevalent as investors flock to emerging markets to meet the growing demand for infrastructure and investment opportunities in energy, water, transportation, telecommunications, mining and municipal services.

In order to effectively carry out assessments and analyses of these investment proposals, and interface with prospective investors and their representatives, technical/financial staff must be able to:

• Develop effective screening processes and feasibility studies that are based on financial data and  assumptions.
• Identify and allocate various risks associated with each project to the various stakeholders.
• Construct  financial models of a project finance transaction, calculate value for money (VfM) and public sector comparator (PSC) benchmarks, evaluate feasibility assumptions and NPV values for the underlying investment .
• Prepare sensitivity analyses to stress test the project’s cash flows, projected internal rate of return (IRR), debt service coverage ratios(DSCR) .
• Assess underlying assumptions economic and financial assumptions contained in the financial models developed by private companies and their advisors.
• Present and discuss findings to various strategic and technical audiences.

A key element  involved with Project Finance is risk management and allocation, including capital adequacy requirements of financing banks and the impact of those requirements on the cost of financing.  As more of these transactions are presented for financing in their respective countries, financial analysts will be needed who can advise regulatory and banking authorities on how to classify the risks of project finance loans on their banks’ books compared to other corporate loans.

The Solution - the IP3 Project Finance Certification  
IP3 is filling this knowledge gap through a multi-disciplinary certification program in project finance which provides in-depth training in the core areas of strategic risk analysis through finance and business modeling for project finance transactions.

Through its course offerings, IP3’s project finance certification program addresses the following issues:

• Organizational Structure - motivations  for using project finance, financing and investment objectives, identifying projects that justify project finance instead of a corporate finance structure.
• Contractual Structure - structuring  a SPV to allocate risks, tools for measuring value and quantifying risks, risk management and governance structure.
• Financial Forecasts & Governance - costs and benefits of creditor based governance systems, different capital structures (capital leases, operating leases, gearing ratios and determination of project borrowing capacity), building project financial models, interpreting NPV and IRR ratios.

Through classroom and online course options, each of the above topical areas are developed in modules designed to provide analysts with in-depth understanding of the methodologies and formulae to apply to compute the costs and benefits of project finance transactions. Upon the completion of the certification requirements, the project finance certificate holder should be able to:

• Understand whether a project finance structure aligns with the business objectives of a project through VfM and PSC analysis.
• Develop risk management strategies for classifying and mitigating default risks for project finance projects.
• Understand project finance legal documents to be able to interface with project attorneys.
• Understand the collateral structure of project finance transaction and how it should work to mitigate default risks and optimize returns.
• Prepare and analyze a project finance model spreadsheet and forecast project revenues and costs for a project.
• Calculate the Weighted Average Cost of Capital, IRR and DSCR for alternative project finance structures.
• Prepare and interpret sensitivity analysis for a project finance transaction.
• Prepare real options analysis for project finance transactions.
• Prepare and structure a project finance term sheet.
• Communicate findings and results to various strategic and technical stakeholders.

Standards in Project Finance
The Certified Project Finance Specialist™ program was created to foster standards of knowledge, understanding, and  skillset development in the field of project finance that are highly valued by governments, PPP units, private sector firms, financial institutions,  and other relevant stakeholders. Our goal is to foster worldwide excellence in the strategic, technical and financial development of project finance planning and modeling through standards that are widely recognized and consistently applied. We do this by successfully identifying and championing generally accepted "best practice" approaches to project finance and  transfer this knowledge to participants through education and training.

Each training course eligible for certification has undergone a review to ensure that the quality standards are consistent with the certification requirements and that adult learning and professional development goals are being met.  At a minimum, all courses provide intensive training on the current practical issues and challenges facing decision-makers today in project financing strategies and techniques. Training methodologies focus on the transfer of knowledge and exchange of ideas in an adult learning environment.  IP3 courses are accredited by IACET, the leading international accrediting body for issuing continuing education units (CEUs).

We expect all graduates of the Certified Project Finance Specialist™ program to be active practitioners in this field and to be sought out for their expertise and knowledge.

Requirements

To enter into the professional certification program, participants must be mid-career professionals holding a bachelor’s degree (or equivalent) with a minimum of two years professional experience.

To receive the Certified Project Finance Specialist™ participants must complete the following requisites:

• Completion of 24.0 continuing education units (CEUs)  of training from the list of approved courses of which a minimum 18.0 CEUs must be obtained from IP3 course offerings and up to 6.0 CEUs may be earned (i.e. waived in) from a qualified and verified third party training institution.
• For each IP3 course completed, the enrollee must complete a 15 question multiple choice test and get at least 12 correct.
• After the coursework is completed, there is a final completion test: each enrollee must complete a 20 question multiple choice test and get at least15 correct.

If you do not meet the minimum correct score on one of the tests, you will be provided an opportunity to retake the test.

There is no cost to participating in the certification program itself, only the cost of the training courses that you take.

Once you have completed all the requirements, you will receive a formal certificate from IP3 designating you as a Certified Project Finance Specialist™.

Who Should Become Certified

Individuals that should seriously consider becoming a Certified Project Finance Specialist include:

• National, State, or Local Government Officials (including PPP Unit officials) responsible for identifying, screening, and financial planning/modeling of infrastructure investment projects in the water, energy, transportation, telecommunications, sanitation, information technology, or any other public or municipal service area.
• Bankers and Financiers involved in developing project financing strategies and models for infrastructure investment.
• Financial Analysts involved with infrastructure project development teams.
• Consultants, Professors, and other Professionals responsible for providing project financing advice and technical assistance to public and private sector clients on the planning and management of infrastructure investment.

¹IP3 uses the International Association for Continuing Education and Training (IACET) definition of a Continuing Education Unit (CEU). 10.0 hours of "contact" training is the equivalent of 1.0 earned CEU (for example, a one-week training course with six hours of "contact" training per day would earn 3.0 CEUs). "Contact" is defined as classroom sessions, professional site visits, session preparations, and action planning development. For further information on CEU standards, please visit www.iacet.org. IP3 is an Authorized Provider of IACET CEUs.

Benefits

The benefits of becoming a Certified Project Finance Specialist include the following:

• Enhance Job-Related Skills for Professional Career Advancement. The professional certification is geared towards both short-term and immediate job skill enhancement and long-term career development. By obtaining a "Professional Certification", you will have the requisite expert skills set to provide top quality services to your institution and be recognized internationally as a specialist in your field.
• Practical and Convenient Course Scheduling for Busy Professionals. Our courses are offered in locations worldwide and are conducted in convenient one-to-three week time periods. Our e-learning (online) courses will allow participants to take courses at "any place and any time". This allows for maximum concentration on the course subject matter without significant time away from the office.
• Work With and Be Qualified to Join Our Distinguished Faculty. IP3 faculty are selected and retained based on two premises: their practical work experience in the appropriate subject matter and their ability to teach and communicate in an adult learning environment. All of our faculty have hands-on, practical experience and all have extensive teaching capabilities. Once certified, all graduates become eligible to join the global faculty as a resource in future IP3 programs.
• Global and Comprehensive Body of Knowledge and Developed Skills Set on Project Finance. The completion of the professional certification will provide you with a global and comprehensive body of knowledge on project finance.  IP3 has trained thousands of participants on infrastructure project finance and there is no greater leader in this field than IP3.

Courses Eligiblity

• Conducting Value-for-Money (VfM) and Public Sector Comparator (PSC) Tests for PPP Projects, Washington, DC (6.0 CEUs)
• Fundamentals of Infrastructure Project Finance, Online (3.0 CEUs)
• Project Finance and Financial Analysis Techniques for Infrastructure Projects, Washington, DC (6.0 CEUs)
• Building Financial Model in MS Excel® to Analyze the Viability and Financing of Infrastructure Projects, Washington, DC (6.0 CEUs)
• Infrastructure Development Funds: Strategies to Leverage Public and Private Finance, Washington, DC (6.0 CEUs)
• Advanced Project Finance and Financial Modeling Techniques, Online (3.0 CEUs)

Tariff Elective Courses: 
From the courses below, one classroom course or both online courses may serve as an elective(s) to earn up to 6.0 CEUs.

• Tariff Rate Strategies and Cost Recovery Requirements: Implications for Government Regulators and Utilities, Washington, DC (6.0 CEUs)
• Fundamentals of Utility Tariffs: Determining Revenue Needs and Structuring Rates, Online (3.0 CEUs)
• Advance Rate Setting and Subsidy Design Strategies for Utilities and Regulatory Authorities, Online (3.0 CEUs)

More courses will be added to this list in the future, so please check back regularly.