In the pursuit of achieving ambitious infrastructure development goals and the Sustainable Development Goals (SDGs), Blended Finance for PPPs: Leveraging Public and Private Capital has emerged as a transformative approach, strategically deploying catalytic public and philanthropic funds to mobilize significantly larger volumes of private investment into Public-Private Partnerships (PPPs) that might otherwise be deemed too risky or financially unviable. This innovative financing model bridges the gap between traditional development aid and commercial finance, addressing market failures and de-risking projects to attract a broader spectrum of private capital for critical infrastructure and public services in developing and emerging markets. This comprehensive training course is meticulously designed to equip public sector officials, development finance institutions, private investors, and project developers with the advanced knowledge and practical skills required to understand the principles, structures, and legal aspects of blended finance, enabling them to design, negotiate, and implement financial solutions that maximize impact, attract private capital, and accelerate sustainable development through PPPs. Without expertise in Blended Finance for PPPs, stakeholders risk missing opportunities to unlock essential private funding, thereby limiting the scale and reach of vital development projects, underscoring the vital need for specialized expertise in this critical domain.

Duration: 10 Days

Target Audience

• Public Sector Officials from Ministries of Finance, Planning, and PPP Units
• Development Finance Institutions (DFIs) and Multilateral Development Banks (MDBs) Staff
• Private Sector Investors (Infrastructure Funds, Private Equity, Commercial Banks)
• Project Developers and Sponsors
• Philanthropic Organizations and Impact Investors
• Legal Professionals specializing in project finance and development finance
• Consultants advising on blended finance and PPPs
• International Development Practitioners
• Fund Managers and Investment Professionals
• Anyone involved in mobilizing private capital for sustainable development projects

Objectives

• Understand the fundamental concept and rationale of blended finance for PPPs.
• Learn about the various types of blended finance instruments and their application.
• Acquire skills in identifying projects suitable for blended finance interventions.
• Comprehend techniques for designing and structuring blended finance transactions.
• Explore strategies for de-risking PPP projects to attract private capital.
• Understand the importance of maximizing leverage and catalytic impact of public funds.
• Gain insights into legal and contractual aspects of blended finance arrangements.
• Develop a practical understanding of measuring and reporting impact in blended finance.
• Master negotiation strategies with diverse public and private capital providers.
• Acquire skills in managing complex stakeholder relationships in blended finance deals.
• Learn to apply international best practices and guidelines for blended finance.
• Comprehend techniques for addressing market failures through blended finance.
• Explore strategies for integrating ESG (Environmental, Social, Governance) considerations into blended finance.
• Understand the importance of fiscal implications and contingent liabilities of blended finance.
• Develop the ability to lead and structure innovative blended finance solutions for PPPs.

Course Content

Module 1: Introduction to Blended Finance for Development

• Definition and core principles of blended finance.
• Rationale for blended finance: addressing market failures, mobilizing private capital.
• The "financing gap" for infrastructure and SDGs.
• Overview of the blended finance landscape and key actors (DFIs, MDBs, private sector).
• Blended finance as a tool for sustainable development.

Module 2: Blended Finance Instruments and Structures

• Overview of common blended finance instruments:
• Concessional loans and grants (first-loss, subordinated debt).
• Guarantees (partial credit, political risk, foreign exchange).
• Equity investments (co-investments, catalytic equity).
• Technical assistance and project preparation facilities.
• How different instruments de-risk projects and attract private capital.
• Case studies illustrating instrument application.

Module 3: Project Identification and Suitability for Blended Finance

• Criteria for selecting projects suitable for blended finance interventions.
• Assessing inherent project risks and market failures.
• Strategic alignment with national development priorities and SDGs.
• Demand for blended finance from project sponsors and public authorities.
• Developing a pipeline of blended finance-ready PPP projects.

Module 4: Designing Blended Finance Structures

• Tailoring blended finance solutions to specific project risks and needs.
• Optimizing the use of public/concessional capital for maximum leverage.
• Structuring the capital stack: senior debt, subordinated debt, equity.
• Interplay between blended finance instruments and the underlying PPP contract.
• Financial modeling for blended finance structures.

Module 5: De-risking PPP Projects through Blended Finance

• Addressing political and regulatory risks (e.g., through MIGA guarantees, DFI support).
• Mitigating foreign exchange risk (e.g., through currency hedging, local currency financing).
• Enhancing creditworthiness and bankability for private lenders.
• Providing first-loss or subordinated capital to absorb early risks.
• Case studies of de-risking strategies.

Module 6: Maximizing Leverage and Catalytic Impact

• Measuring the "catalytic effect" of public/concessional capital.
• Understanding the leverage ratio in blended finance.
• Strategies for maximizing private sector mobilization.
• Avoiding "crowding out" private investment.
• Ensuring additionality of blended finance interventions.

Module 7: Legal and Contractual Aspects of Blended Finance

• Drafting and negotiating blended finance agreements (e.g., common terms agreements, inter-creditor agreements).
• Legal implications of different blended finance instruments.
• Security packages and direct agreements in blended finance structures.
• Governing law and jurisdiction for multi-party, multi-source deals.
• Compliance with international legal standards.

Module 8: Risk Allocation and Management in Blended Finance

• Principles of risk allocation among public, private, and DFI/MDB partners.
• Managing specific risks introduced by blended finance (e.g., moral hazard, reputational risk).
• Due diligence requirements for blended finance transactions.
• Developing robust risk mitigation frameworks.
• Case studies of risk management in blended finance.

Module 9: Fiscal Implications and Contingent Liabilities

• Accounting treatment of blended finance instruments.
• Assessing and managing contingent liabilities arising from public sector guarantees.
• Impact of blended finance on government debt and fiscal space.
• Transparency and reporting requirements for blended finance commitments.
• Ensuring fiscal sustainability of blended finance initiatives.

Module 10: Measuring and Reporting Impact

• Defining clear development impact objectives for blended finance projects.
• Developing robust impact measurement frameworks (e.g., IRIS+, GIIN).
• Data collection, monitoring, and evaluation of impact.
• Reporting on financial and non-financial outcomes.
• Aligning with the Sustainable Development Goals (SDGs).

Module 11: Governance and Institutional Frameworks for Blended Finance

• Role of national blended finance units or coordinating mechanisms.
• Internal governance for DFIs and MDBs in blended finance.
• Transparency and accountability in blended finance transactions.
• Stakeholder coordination and communication.
• Building capacity for blended finance within public institutions.

Module 12: ESG (Environmental, Social, Governance) in Blended Finance

• Integration of ESG principles throughout the blended finance lifecycle.
• Legal and contractual requirements for ESG compliance.
• Due diligence on environmental and social risks.
• Promoting gender equality and social inclusion through blended finance.
• Reporting on ESG performance.

Module 13: Negotiation Strategies for Blended Finance Deals

• Preparing for multi-party negotiations with diverse interests.
• Understanding the perspectives of public, private, and DFI/MDB partners.
• Building consensus and managing disagreements.
• Effective communication and relationship building.
• Case studies of complex blended finance negotiations.

Module 14: Case Studies and Best Practices in Blended Finance for PPPs

• In-depth analysis of successful blended finance transactions in various sectors (e.g., renewable energy, transport, social infrastructure).
• Lessons learned from challenging blended finance deals.
• Best practices from leading DFIs and MDBs.
• Adapting blended finance models to different country contexts.
• Discussion of innovative blended finance structures.

Module 15: Future Trends and Evolution of Blended Finance

• Role of new technologies (e.g., blockchain, AI) in blended finance.
• Mobilizing institutional investors for blended finance.
• Scaling up blended finance for climate action and resilience.
• Social impact bonds and other innovative instruments.
• The evolving landscape of development finance and private capital mobilization.

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.