Infrastructure Project Finance

Course Overview

The Infrastructure Project Finance (IPF) course will provide participants the opportunity to broaden their knowledge and understanding of the key parties and financial considerations in developing critical resources, such as roads, bridges, ports, power grids and waste facilities.

Participants will explore the rationale and economics of governments using IPF for delivering much-needed services to constituents. You will examine the returns to private enterprises involved in IPF and the risks to both private and public entities along with assessing various IPF structures, comparing and contrasting the key advantages and disadvantages of each.

Analyse key risk factors, such as commercial and financial risks, and perform preliminary cash flow forecasts for the project and determine debt repayment schedules and returns to equity investors

Learning Objectives

• Describe the IPF process and key players.
• Differentiate IPF from other types of financing.
• Explain rationale for Governments and Sponsors to use an IPF structure.
• Describe the structure and use of a Special Purpose Vehicle (SPV) in an IPF.
• Examine the cash flows, collateral, and other reasons for lenders to support an IPF deal.
• List the other parties to an IPF and review cost and income implications for each.
• Determine commercial and financial risk of an IPF.
• Discuss the limited nature of recourse on the Project debt to the Sponsors and Government.
• Forecast cash flows and determine Cash Flow Available for Debt Service (CFADS).
• Develop a reasonable repayment schedule with appropriate Debt Service coverage ratios.
• Explore different IPF structures and the strengths and weaknesses of each.
• For Build, Own, Transfer (BOT) structures, discuss issues around transferring the underlying asset from the Private Partner to the Government.