Overview

Africa needs new infrastructure. The Gulf faces unique and growing financial challenges. The population is growing, and there is a clear need for more and better infrastructure to match. Roads, airports, schools, hospitals and housing: the list is enormous and growing. Yet severely limited budgets and deficits continue to prevent government at all levels from delivering the kinds of structural change that has always been needed. In Middle East, however, some countries in the region have developed relatively successful PPP programmes – similar in many ways yet with specific national characteristics. Challenges remain throughout the region and are intensifying in the current environment.

Merely grasping the concepts of PPP does not do justice to our great responsibility of having an ownership in our nation’s future. We already know what we need to do, now is the time to really discover HOW.

This master class aims to do just that. Beginning with an in-depth understanding of how PPPs work, from financial, commercial, project & legal aspects, we seek to push our participants to innovate with real life case studies, group discussions and technical evaluation.

Course Objective

• Financial & Commercial aspect of PPP, e.g. funding, how to attract investors, project finance, ROI
• Project aspect of PPP, e.g. project planning, cost control, risks, implementation
• Legal aspect of PPP, e.g. contract, regulation, dispute resolution
• Sector-by-sector analysis of PPP models and structures
• Building a real PPP model using Excel

Benefits of Attending

• Source funding for local and international projects
• Evaluate the successes and failures of Africa/Middle East private finance
• Implement, structure and strategise PPP/PFI projects
• Review PPP financing options and financial models to optimise ROI
• Learn best practice for the delivery of PPP contracts
• Analyse financial and legal aspects of PPP contracts
• Place African PPP projects in global context and evaluate the future structure, challenges and prospects for African infrastructure
• Apply the principles of African and global private finance experience to other markets
• Learn best practice in PPP modelling
• Build a reliable PPP model from scratch using Excel

Course Outline:

DAY 1

• The Debate: What Should the State Provide?
• Case Study: The privatisation agenda
• Case Study: PPP experience in Africa / the Gulf – the good, bad and ugly
• Case Study: Why has the UK rejected PPP?
• Case Study: Taxation structures for private investment in infrastructure
• What Really Matters
• Case Study in structure: Lease-Develop-Operate (LDO) and Wrap-Around Addition (WAA)
• Group Discussion: Technical skills and the public sector – what needs fixing?
• Case Study: Corruption and inefficiency in PPP delivery – causes, course and consequences
• Sectoral Analysis: Toll Roads / Railways / Schools and Hospitals / Housing etc.

DAY 2

• Project Evaluation
• Case Study: International comparison of best practice guides in PPP experience and their application
• PPP Procedures
• Case Study: National PPP procedures compared to PF2 and other international practice
• Case Study: What happens when projects fail?
• Financing the Project
• Case Study: The role of the African Development Bank / Islamic Development Bank
• Case Study: Review of a PPP funding structure
• Module 7: Specific Contract Issues
• Case Study: How to rate a PPP transaction
• Case Study: Types of project finance structures appropriate for infrastructure finance
• Exercise: Resolving finance and structural issues in infrastructure provision

DAY 3

• Overview of Risk and Risk Allocation
• Case Study: Comparative risk evaluation in water and sanitation treatment plants
• More to Consider
• Organizing Legal Agreements
• Case Study: The standard PPP contract (including guidance and contracts in Africa / Middle East)
• Case Study: the UK Local Government contract – how useful?
• Case Study: Indian concession contract for a toll road – evaluation
• The Future of Private Finance for Infrastructure
• Case Study: International comparison of best practice guides in PPP experience and their application

DAY 4

• PPP Modelling
• Project Cash Flow
• Project Finance and PPP Models
• Case Study: Valuation and Cash Flow models
• Case Study: Revenue and cost models
• Project Finance in Practice
• Project Finance/PPP Model Issues
• Case Study: Modelling cash flow waterfalls
• Approaches to Rating in Project Finance/PPP Models
• Using Project Finance/PPP Models
• Case Study: Review of several project finance models and their decision-making input

DAY 5

• Building a PPP Model
• Project review
• Analyzing the inputs
• Dealing with input priorities
• Data plausibility
• Cash flow projections
• Loan assessment
• IRR NPV and other valuation analysis