Introduction

This training is designed by the Project Finance Certified Specialist Program to provide a critical core body of knowledge and skills in project finance and financial modeling.

An IP3 Project Finance Specialist Certification validates a breadth of knowledge acquired through immersive training in financial modeling and contractual structuring.

Specialists will develop skills including:

• Developing an effective feasibility study screening process based on financial data analysis

• Identifying and allocating the various risks associated with each project to the appropriate stakeholder

• Constructing and creating financing models that calculate value-for-money (VfM) and public sector comparator (PSC) benchmarks, and that evaluate feasibility assumptions and net present values (NPV)

• Preparing sensitivity analyses to stress test the project’s cash flows, projected internal rate of return (IRR), and debt service coverage ratios (DSCR)

• Assessing the underlying economic and financial assumptions contained in the financial models developed by the private sector 

• Identifying and understanding sources of finance, including both equity and debt

• Communicating and discussing findings with stakeholders

Course Objectives

• Advance your skills and create a positive impact within your current role

• Become more marketable and mobile

• Generate added opportunities for professional growth

• Increase your income potential with additional expertise

• gained through certification

• Work with and qualify to join our distinguished faculty

• Demonstrate your global and comprehensive PPP skills

Target Audience

• National, regional, and local government officials responsible for infrastructure financial modeling

• Contract officers and regulatory commissioners

• Financial analysts from PPP or privatization units

• Public servants, utility managers, executives, and financial experts

• Audit or project managers

• Staff of bilateral and multilateral international organizations

Course content

Caveats and Issues to Consider in the Cost Benefits and Risk of VfM Evaluations

Differences between and objectives of cost-benefit analysis

• and VfM analysis

• Cost-benefit evaluation

• Control of the socio-economic evaluation

• Legal due diligence for project preparation

• Public sector comparator (PSC)

• Risk analysis and VfM

• Selecting the best modality: Public works or PPP?

• Public-private comparator

• Methodological deficiencies of VfM analysis

• Caveats, issues, and control of the risks and VfM evaluation

• Caveats and controls of the PPP financial evaluation

• Main risks, pitfalls, and mistakes in PPP contracts

Introduction to PPP Comprehensive Cost-Benefit Analysis

• The economic and financial perspective of PPPs

• Understanding the stages that comprise the PPP comprehensive cost-benefit analysis

• Common language of comprehensive cost-benefit analysis

PPP Traditional Cost-Benefit Analysis

• The socio-economic evaluation of infrastructure projects

• Understanding the added value of socio-economic evaluation

• Differences between project socio-economic evaluation and investment projects’ financial evaluation

• Differences between the socio-economic evaluation of PPP projects and the convenience analysis of PPP modalities

Project Screening and Eligibility Analysis

• Identifying and selecting PPP projects at an early stage of the project development cycle

• Key success factors for PPP projects

• Tools for identifying and selecting PPP projects

• Eligibility index

PPP Risk Analysis: Identification and Hierarchy

• Risk analysis steps

• Essential tools for risk analysis

• The importance of PPP risk analysis identification & Hierarchization

International Experience in PPPs: Best Practices and Lessons Learned

• Outcomes of PPPs around the world

• Common problems of structured PPP

• New trends and innovations

• Chilean PPP Model

• Key elements to facilitate PPP financing in Chile

• PPP case studies

PPP Risk Analysis Valuation

• Statistical techniques for risk valuation

• Cost of risk

Financial Modeling of PPPs

• Operation of a financial model

• Issues in determining cost of capital

• Weighted average cost of capital (WACC)

Deconstructing a PPP Financial Model

• The main worksheets of a financial model

• Debt service coverage ratio (DSCR)

• Minimum DSCRs for PPPs

Value for Money: The Public-Private Comparator

• PPP comprehensive cost-benefit analysis (CCBA)

• Value for money quantitative dimension

• Risk transfer profile

Qualitative Dimension: VfM Map

• Synthetic index