Project finance is often defined as the long- term financing of infrastructure projects based upon the projected cash flows of the project rather than the balance sheets of the project sponsors. Virtually all privately financed infrastructure projects utilize some form of project financing to secure the transaction.
Understanding the strategic and technical components of Project Finance is absolutely critical for individuals involved with planning and financing infrastructure development.
Strategic elements of project financing include an understanding of project screening, value-for-money analysis, and risk mitigation & allocation. Technical elements of project financing include an understanding of the data and relevant assumptions, sensitivity analyses, tariffs, projecting cash flow, NPV & IRR returns, and cost of capital – all critical to building and interpreting the actual financial model.
To address the range of issues involved in project finance, IP3 provides a suite of classroom and online courses as well as a professional Project Finance certification program.
Key training areas include:
- Developing effective screening processes and feasibility studies that are based on financial data and assumptions
- Identifying and allocating various risks associated with each project to the various stakeholders
- Constructing 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
- Preparing sensitivity analysis’s to stress test the project’s cash flows, projected internal rate of return (IRR), debt service coverage ratios(DSCR)
- Identifying and developing sources of financing through infrastructure development funds
- Assessing underlying assumptions economic and financial assumptions contained in the financial models developed by private companies and their advisors.
- Presenting and discussing findings to various strategic and technical stakeholders
Sectors include: energy & electricity, water & waste water, transportation (roads/bridges, airports, ports, and rail), telecommunications, education, health, and municipal services
Please click for a current listing of upcoming Project Finance courses