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 Outlines

Day 1: Introduction to VfM, Cost-Benefit Analysis, and PPP Fundamentals

• Differences between cost-benefit analysis and Value for Money (VfM) analysis
• Objectives of cost-benefit evaluation
• Control of socio-economic evaluation
• Legal due diligence for project preparation
• Public Sector Comparator (PSC)
• Introduction to PPP comprehensive cost-benefit analysis
• Economic and financial perspectives of PPPs
• Stages of PPP cost-benefit analysis
• Common language of comprehensive cost-benefit analysis

Day 2: PPP Evaluation and Project Selection

• Selecting the best modality: Public works vs PPP
• Public-Private Comparator
• Methodological deficiencies of VfM analysis
• Caveats and control of risks in VfM evaluation
• PPP financial evaluation risks and controls
• Main risks, pitfalls, and mistakes in PPP contracts
• Project screening and eligibility analysis
• Identifying and selecting PPP projects early in the development cycle
• Key success factors for PPP projects
• Tools for PPP project selection
• Eligibility index

Day 3: PPP Risk Analysis and International Experience

• PPP risk analysis: identification and hierarchy
• Risk analysis steps and essential tools
• Importance of risk identification and prioritization
• Statistical techniques for risk valuation
• Cost of risk
• International PPP experience: best practices and lessons learned
• Outcomes of PPP projects worldwide
• Common problems in structured PPPs
• New trends and innovations
• Chilean PPP model and key financing elements
• PPP case studies

Day 4: PPP Financial Modeling and Investment Analysis

• Financial modeling of PPP projects
• Operation of PPP financial models
• Determining cost of capital
• Weighted Average Cost of Capital (WACC)
• Deconstructing PPP financial models
• Main worksheets of financial models
• Debt Service Coverage Ratio (DSCR)
• Minimum DSCR requirements for PPPs
• PPP risk analysis valuation techniques

Day 5: Value for Money and Advanced PPP Evaluation

• Public-Private Comparator and VfM analysis
• Comprehensive Cost-Benefit Analysis (CCBA)
• Quantitative dimension of Value for Money
• Risk transfer profiles in PPPs
• Qualitative VfM mapping
• Synthetic index for evaluation
• Socio-economic evaluation of infrastructure projects
• Differences between financial and socio-economic evaluation
• Differences between PPP evaluation and investment appraisal
• Summary of PPP evaluation tools and methodologies