Project Finance

3 day course on Project Finance

Day one

Objectives:

At the end of this session all participants should be able to:

• Describe the difference between project finance and conventional company finance
  
  
• List the motives for project finance
  
  
• Identify risks associated with a project financing.

Contents:

Risk

• Motives for project finance
• Investigation of risk
• The risk concept
• Different types of risk
• Allocation of risk

Project Cashflows

• Pre - operational
• Post - operational
• Cost structures
• Project dynamics
• Sensitivity analysis.

Day two

Objectives:

At the end of this session all delegates should be able to:

• Describe the documentation required in a project finance transaction
  
  
• Calculate the Return provided by a projects Cashflow
  
  
• Calculate Ratios from a Bankers and Investors viewpoint

Contents:

Documentation

• Contractual relationships
• Loan agreements
• Concessions
• Private finance initiative

The funding choices

• Liquidity
• Debt or equity
• Ratios
• Sources of finance.

Investors' viewpoint

• Return on capital versus cost of capital
• Discounting cashflows.

Day three

Objectives:

At the end of this session all delegates should be able to:

• Sensitise project cashflows
  
  
• Implement the knowledge gained to engineer a financing structure around a base cashflow model.

Contents:

Export Credit Agencies

• Their role in project finance
• Different forms of ECA supported finance

Structuring a transaction - Case Study

• Assumption setting
• Sensitivity of cashflows and assumptions