P-101

PPP Value for Money and Cost-Benefit Analysis

Location: Arlington, VA Classroom
Date: February 15 - 26, 2021
Tuition: $5,500
Registration Code: P101-210215-I1
CEUs: 6.0

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Course Description

A value for money (VfM) analysis consists of a systematic comparison of total costs of financing and delivering an infrastructure project by traditional government means versus private sector means.

For a government, there is no single more important exercise than carrying out this transparent cost comparator. Governments must understand the projected costs and revenue streams early in the development of a potential public-private partnership (PPP) project. Doing so allows them to make an informed, long-term decision as to whether the project is viable and what the appropriate financing mechanism would be.

IP3 provides practical, process-oriented training on how to conduct VfM analyses, case studies of actual analyses, how to structure a PPP transaction appropriately, and hands-on action planning. Participants in this course will learn how to design and manage VfM analyses for use in their own countries and organizations.

Learning Outcomes

Through successful completion of this course, participants will be able to:

  • Analyze why VfM and public sector cost (PSC) comparison analyses are so critical for PPP project development
  • Interpret the overall strategic planning requirements for identifying and screening PPP project opportunities
  • Illustrate how to construct PSC and VfM models and how to calculate and analyze cost input variables for PPP projects
  • Evaluate how to forecast financing costs and discount rates for both traditional (government) and private sector, and capital market financing
  • Demonstrate how to analyze, value and manage retained public sector risks and contingent liabilities in long-term PPP projects
  • Calculate the differences between financial and economic analysis for projects, including valuation, NPV, IRR and discount rates

Who Will Benefit

  • Government officials from national line ministries, state infrastructure agencies, or municipal governments
  • Officials from PPP, privatization units or investment agencies responsible for infrastructure development
  • PPP transaction advisors, bankers or project developers involved with PPP project development
  • Staff of bilateral and international development organizations

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