In the long-term, high-value domain of Public-Private Partnerships (PPPs), effectively managing Political, Regulatory, and Force Majeure Risks is absolutely critical, as these external, often unpredictable events can severely disrupt project viability, erode investor confidence, and lead to significant financial and operational distress for both public and private partners. Unlike commercial or technical risks, these "sovereign" and "event" risks are typically beyond the direct control of the private sector, necessitating robust contractual provisions, government support mechanisms, and international frameworks to ensure project resilience and attract necessary private capital. This comprehensive training course is meticulously designed to equip public sector officials, project developers, financial institutions, legal professionals, and risk managers with the advanced knowledge and practical strategies required to identify, assess, allocate, and mitigate these complex and often contentious risks throughout the entire PPP lifecycle, ensuring project stability and long-term success. Without robust expertise in Political, Regulatory, and Force Majeure Risks in PPPs, stakeholders risk project abandonment, costly disputes, and a failure to deliver essential infrastructure and services, underscoring the vital need for specialized expertise in this critical domain.

Duration: 10 Days

Target Audience

• Public Sector Officials from Ministries of Finance, Justice, and PPP Units
• Private Sector Project Developers and Sponsors
• Legal Professionals specializing in international law, public law, and project finance
• Investment Bankers and Lenders' Representatives
• Political Risk Analysts and Consultants
• Risk Managers in infrastructure organizations
• Government Policy Makers and Regulators
• International Development Practitioners
• Insurance and Guarantee Providers (e.g., MIGA, ECAs)
• Anyone involved in the structuring, negotiation, or oversight of PPP projects.

Objectives

• Understand the nature and characteristics of political, regulatory, and force majeure risks in PPPs.
• Learn about the various types of political and regulatory risks (e.g., change in law, expropriation).
• Acquire skills in identifying and assessing these risks throughout the PPP lifecycle.
• Comprehend techniques for optimally allocating these risks between public and private parties.
• Explore strategies for mitigating these risks through contractual provisions and government support.
• Understand the importance of political risk insurance and guarantees.
• Gain insights into designing robust force majeure clauses in PPP contracts.
• Develop a practical understanding of dispute resolution mechanisms for these risks.
• Master negotiation strategies for contentious political and regulatory issues.
• Acquire skills in monitoring and managing the evolving political and regulatory landscape.
• Learn to apply international best practices and guidelines for these risks.
• Comprehend techniques for assessing country risk and political stability.
• Explore strategies for ensuring long-term project stability despite external shocks.
• Understand the importance of transparency and good governance in mitigating these risks.
• Develop the ability to lead and implement effective risk management frameworks for political, regulatory, and force majeure events.

Course Content

Module 1: Introduction to Political, Regulatory, and Force Majeure Risks

• Definition and distinguishing features of these "external" or "sovereign" risks.
• Why these risks are particularly critical and challenging in long-term PPPs.
• Impact on project bankability, financial viability, and investor confidence.
• Consequences of unmanaged political, regulatory, and force majeure events.
• Overview of international experiences with these risks in PPPs.

Module 2: Political Risks in PPPs

• Types of political risks: expropriation, nationalization, political violence, breach of contract by government.
• Changes in government policy or priorities impacting the project.
• Unilateral actions by the public authority.
• Political instability and civil unrest.
• Risk of non-payment or non-performance by government entities.

Module 3: Regulatory Risks in PPPs

• Types of regulatory risks: adverse changes in laws, regulations, or permits.
• Tariff regulation and unexpected price controls.
• Environmental or social regulatory changes.
• Delays or denial of necessary permits and approvals.
• Changes in tax laws impacting project economics.

Module 4: Force Majeure Risks in PPPs

• Definition of force majeure (FM): unforeseeable, unavoidable events beyond parties' control.
• Types of FM events: natural disasters (earthquakes, floods), epidemics/pandemics, war, terrorism.
• Distinguishing FM from other project risks.
• Legal implications of FM events on contractual obligations and timelines.
• Allocation of costs and responsibilities during FM events.

Module 5: Risk Identification and Assessment Methodologies

• Systematic identification of political, regulatory, and force majeure risks.
• Qualitative assessment: probability and impact analysis.
• Quantitative assessment: scenario analysis, probabilistic modeling (conceptual).
• Utilizing country risk assessments and political risk ratings.
• Role of expert opinions and geopolitical analysis.

Module 6: Optimal Allocation of Political and Regulatory Risks

• Principles of allocating "sovereign" risks (often retained or shared by the public sector).
• Contractual mechanisms for risk sharing (e.g., compensation for change in law, renegotiation).
• Balancing public sector's control over policy with private sector's need for stability.
• Impact on project bankability and cost of finance.
• Case studies of political/regulatory risk allocation.

Module 7: Contractual Provisions for Political and Regulatory Risks

• Change in Law clauses: definition, triggers, compensation mechanisms.
• Expropriation and Nationalization clauses.
• Political Force Majeure events.
• Government undertakings and assurances.
• Dispute resolution mechanisms for political/regulatory disputes.

Module 8: Contractual Provisions for Force Majeure Risks

• Drafting clear and comprehensive force majeure clauses.
• Definition of specific FM events.
• Notification procedures and evidence requirements.
• Consequences of FM: suspension of obligations, extension of time, cost allocation.
• Termination for prolonged FM and associated compensation.

Module 9: Political Risk Insurance (PRI) and Guarantees

• Role of PRI in mitigating political risks for private investors.
• Providers of PRI: MIGA, ECAs, private insurers.
• Types of coverage: expropriation, currency inconvertibility, political violence, breach of contract.
• Government guarantees for specific political or regulatory risks.
• Legal and financial implications of PRI and guarantees.

Module 10: Government Support and Credit Enhancements

• Direct government support (e.g., viability gap funding) to compensate for political/regulatory impacts.
• Sovereign guarantees for debt service or revenue.
• Role of Multilateral Development Banks (MDBs) and Development Finance Institutions (DFIs) in de-risking.
• Blended finance approaches for political/regulatory risk mitigation.
• Fiscal implications of government support.

Module 11: Dispute Resolution for Political, Regulatory, and FM Risks

• Multi-tiered dispute resolution clauses in PPP contracts.
• Negotiation, mediation, and expert determination.
• International arbitration (e.g., ICSID) for investor-state disputes.
• Role of national courts.
• Enforcement of arbitral awards against sovereign entities.

Module 12: Monitoring and Managing Political and Regulatory Landscape

• Continuous monitoring of political stability and policy changes.
• Regulatory intelligence gathering.
• Engaging with government stakeholders and regulators.
• Proactive advocacy for a stable and predictable regulatory environment.
• Early warning systems for potential political/regulatory disruptions.

Module 13: Crisis Management and Business Continuity Planning

• Developing plans for responding to major force majeure events.
• Business continuity plans for operational resilience.
• Communication strategies during crises.
• Coordination between public and private parties in emergencies.
• Lessons learned from real-world crises (e.g., pandemics, natural disasters).

Module 14: International Best Practices and Guidelines

• Review of international guidelines on political, regulatory, and force majeure risks in PPPs.
• Comparative analysis of risk management approaches in different jurisdictions.
• Lessons learned from major international PPP projects impacted by these risks.
• Adapting global best practices to local contexts.
• Emerging trends in managing these risks.

Module 15: Case Studies and Practical Risk Workshops

• In-depth analysis of specific PPP projects that faced significant political, regulatory, or force majeure events.
• Discussion of successful and unsuccessful mitigation strategies.
• Practical exercises in identifying and allocating these risks for a hypothetical PPP project.
• Workshop: Drafting key contractual clauses for political, regulatory, and force majeure events.
• Role-playing negotiation scenarios for contentious risk issues.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.