Financial Analysis Techniques for Infrastructure Projects Program

Location: Online Learning
Tuition: $5,500
CEUs: 6.0

Course Description

Project finance is the financing of long-term infrastructure, industrial projects, and public services based upon a non-recourse or limited-recourse financial structure, in which project debt and equity used to finance the project are paid back from the cash flow generated by the project. In most developing markets, project finance is the preferred financial structure because the financing is limited- or non-recourse to the government.

Financial Analysis Techniques for Infrastructure Projects is designed for infrastructure professionals looking to gain a deeper understanding of how to structure and negotiate successful project-backed financing that is viable to lenders and investors.

The program will enable participants to interpret financial statements including cash flows, profit and loss, and balance sheets to analyze whether a project’s financial structures are bankable, affordable, and sustainable.

Participants will also learn to identify the essential financial input data required to develop an appropriate PPP financial model, and will be exposed to effective financial modeling design skills by analyzing case studies, developing their own financial models, and receiving feedback about how to improve their models.

60 Learning Hour Program Includes:

Program Contents & Learning Outcomes

Through successful completion of the following courses, participants will be able to:

F-10 Essentials of Financing Public-Private Partnerships

Understand the elements of financing PPPs
Utilize PPP finance terminology and concepts
Recognize ways to classify projects by deal structure and customer type
Review various examples of deals
Identify, quantify, and allocate risks
Make PPP deals more credit-worthy

F-11 Financial Analysis Techniques for PPPs

Utilize the primary financial statements (balance sheet, income statement, cash flow statement) to understand the structure and performance of PPPs
Apply the concept of the time value of money and perform financial calculations used by private investors such as the net present value (NPV) and internal rate of return (IRR)
Calculate key ratios and indicators used by commercial lenders to determine project loan repayment capacity, such as the debt service coverage ratio (DSCR) and the financial rate of return (FRR).
Analyzine how a PPP unit defines and calculates ‘value for money’

F-12 Project Risk Analysis for Investors, Lenders, and Governments

Recognize the consequences of the risk distribution principle in PPPs
Identify the distinction between funding and financing in PPPs.
Understand the different financing options and how they are affected by the risk allocation
Apply the alternatives for managing risks across the different stages of the contract and project (financial closure, construction, operation)
Recognize the possibility of renegotiations as an inherent consequence of the risk distribution and the long-term contracting features of a PPP contract

F-13 Project Agreements and Contract s

Assess the most critical project documents (shareholder’s agreement, O&M agreement, offtake agreement, construction contract, etc.), and their roles in enhancing the bankability of transactions
Identify the major sections of the term sheet and finance agreement and the issues most often subject to intense negotiation
Understand the role of other financing documents such as inter-creditor agreements and various credit enhancements, including project completion guarantees
Review the role of political risk guarantees/insurance in the facilitation of investment and debt and the primary features of the contracts offering such coverage

F-14 Understanding Financial Statements & Project Finance Models

Discern between flow (cash-flow and profit and loss statements) vs. stock (balance sheets) structures in financial statements
Understand the key differences between cash flow analysis (financial analysts) and income analysis (accountants) in PPP financial statements
Design structures of cash flow statements for PPP financial models: cash flow from operations, cash flow from financing activities, and cash flow from investments
Understand and apply key accrual accounting principles to PPP investments: depreciation and income taxes
Design structures of profit and loss statements for PPP financial models

F-15 Designing a Project Finance Model

Evaluate a candidate PPP project and identify the essential financial input data required to develop an appropriate PPP financial model
Identify the key outputs of a PPP financial model to determine bankability and affordability
Design the key components and worksheets in a PPP financial model, including dashboards, capital investment, financing, profit & loss statement, cash flow statement, and balance sheet
Apply practical standards in designing, programming, and displaying PPP financials to support clear decision-making: labeling, formatting, and graphing standards
Use the PPP financial model to evaluate PPP risk-allocation requirements, bankability, and affordability
Manage and facilitate the process of gathering, verifying, and updating the key input data assumptions required by the PPP financial models
Oversee and manage PPP financial specialist consultants and advisors: reviewing, critiquing, and testing consultants’ PPP financial models