For any government or private entity embarking on a Public-Private Partnership (PPP), mastering Due Diligence for PPP Project Preparation is an absolutely indispensable foundational step, serving as the critical investigative process that identifies, assesses, and mitigates all material risks before significant capital is committed or a procurement process is launched. Unlike traditional projects, PPPs involve complex, long-term contractual relationships and substantial risk transfer, making thorough due diligence across technical, financial, legal, environmental, and social dimensions paramount to ensuring project viability, bankability, and long-term sustainability. This comprehensive training course is meticulously designed to equip public sector officials, project developers, financial advisors, and legal professionals with the advanced knowledge and practical skills required to conduct rigorous due diligence during the early stages of PPP project preparation, enabling them to make informed decisions, structure robust projects, and attract credible private sector partners. Without meticulous Due Diligence for PPP Project Preparation, stakeholders risk pursuing unviable projects, encountering unforeseen liabilities, and ultimately compromising the success and integrity of their PPP initiatives, underscoring the vital need for specialized expertise in this critical domain.

Duration: 10 Days

Target Audience

• Public Sector Officials from PPP Units, Ministries of Finance, and Sectoral Ministries
• Project Developers and Sponsors (public and private)
• Financial Analysts and Modellers
• Legal Professionals specializing in project finance and public procurement
• Technical Experts (Engineers, Planners, Environmental Specialists)
• Consultants providing project preparation and advisory services
• Risk Managers in public and private organizations
• Procurement Specialists
• Auditors and Oversight Body Personnel
• Anyone involved in the early-stage appraisal and structuring of PPP projects.

Objectives

• Understand the strategic importance of comprehensive due diligence in PPP project preparation.
• Learn about the scope and methodology of different due diligence streams (technical, financial, legal, E&S).
• Acquire skills in identifying and assessing key project risks across all dimensions.
• Comprehend techniques for managing the due diligence process efficiently and effectively.
• Explore strategies for integrating due diligence findings into project structuring.
• Understand the importance of data collection, validation, and information management.
• Gain insights into engaging and managing external due diligence advisors.
• Develop a practical understanding of legal and regulatory compliance during preparation.
• Master risk mitigation strategies based on due diligence findings.
• Acquire skills in preparing comprehensive due diligence reports for decision-makers.
• Learn to apply international best practices and guidelines for PPP due diligence.
• Comprehend techniques for identifying "red flags" and potential deal breakers.
• Explore strategies for ensuring project bankability through robust due diligence.
• Understand the importance of transparency and accountability in the due diligence process.
• Develop the ability to lead and oversee rigorous due diligence for PPP projects.

Course Content

Module 1: Introduction to Due Diligence in PPP Project Preparation

• Definition and purpose of due diligence (DD) in PPPs.
• Why DD is critical at the project preparation stage.
• Objectives of comprehensive DD: risk identification, mitigation, informed decision-making.
• Distinguishing DD from feasibility studies and business case development.
• Overview of the DD process and its various streams.

Module 2: Project Management for Due Diligence

• Planning and scoping the DD exercise.
• Assembling the DD team (internal and external experts).
• Developing a detailed DD work plan and timeline.
• Budgeting for DD costs.
• Managing information flow and data rooms.

Module 3: Technical Due Diligence (TDD)

• Scope of TDD: design review, technology assessment, site conditions.
• Assessing construction methods, timelines, and costs.
• Operational and maintenance (O&M) plans and costs.
• Review of technical studies, surveys, and reports.
• Identifying technical risks and their impact on project viability.

Module 4: Financial Due Diligence (FDD) in Preparation

• Review of preliminary financial models and assumptions.
• Validation of revenue forecasts and cost projections.
• Assessment of initial financing structures and funding gaps.
• Analyzing affordability and fiscal implications for the public sector.
• Identifying key financial risks and their potential impact.

Module 5: Legal Due Diligence (LDD)

• Review of the enabling legal and regulatory framework for PPPs.
• Assessing legal authority for the proposed project and PPP structure.
• Identifying legal barriers: land acquisition, permits, licenses, environmental laws.
• Review of existing contracts and agreements affecting the project.
• Compliance with public procurement laws and anti-corruption legislation.

Module 6: Environmental and Social Due Diligence (ESDD)

• Compliance with national environmental and social laws and regulations.
• Adherence to international standards (e.g., IFC Performance Standards, World Bank EHS Guidelines).
• Review of Environmental Impact Assessments (EIAs) and Social Impact Assessments (SIAs).
• Assessing potential environmental and social risks (e.g., pollution, resettlement, labor issues).
• Developing environmental and social management plans (ESMPs).

Module 7: Commercial Due Diligence (CDD)

• Market analysis and demand assessment for the project's services.
• Competitive landscape and market positioning.
• Review of off-take agreements or revenue support mechanisms.
• Assessing the commercial viability and attractiveness of the project.
• Identifying key commercial risks (e.g., demand risk, market risk).

Module 8: Risk Identification and Mitigation through Due Diligence

• Comprehensive identification of project risks across all DD streams.
• Qualitative and quantitative risk assessment methodologies.
• Developing a robust risk matrix based on DD findings.
• Tailoring risk mitigation strategies (contractual, financial, operational).
• Allocating risks to the party best able to manage them.

Module 9: Engaging and Managing Due Diligence Advisors

• Selecting qualified legal, financial, technical, and E&S advisors.
• Drafting clear Terms of Reference (ToR) for DD advisors.
• Managing advisor contracts and deliverables.
• Ensuring coordination and information sharing among different advisors.
• Reviewing and challenging advisor reports.

Module 10: Data Collection, Validation, and Information Management

• Establishing a secure and organized data room.
• Protocols for information requests and responses.
• Verifying the accuracy and completeness of data provided.
• Managing confidential information.
• Utilizing digital tools for data management.

Module 11: Integration of Due Diligence Findings

• Consolidating findings from all DD streams into a holistic view.
• Identifying interdependencies and cross-cutting risks.
• Prioritizing material risks and opportunities.
• Informing project structuring, risk allocation, and contractual terms.
• Using DD findings to refine the business case.

Module 12: Red Flags and Deal Breakers

• Identifying common red flags in each DD stream.
• Recognizing issues that could render a project unviable or unbankable.
• Strategies for addressing critical issues identified during DD.
• When to recommend abandoning or significantly restructuring a project.
• Lessons learned from projects that failed due to unaddressed DD issues.

Module 13: Due Diligence Reporting and Decision-Making

• Structure and content of comprehensive DD reports.
• Executive summaries for senior decision-makers.
• Presenting key findings, risks, and recommendations clearly and concisely.
• Supporting investment decisions and procurement launch.
• Ensuring reports are actionable and transparent.

Module 14: International Best Practices in PPP Due Diligence

• Review of DD guidelines from international organizations (e.g., World Bank, EBRD, IFC).
• Comparative analysis of DD practices in different jurisdictions.
• Lessons learned from major international PPP projects.
• Adapting global best practices to local contexts.
• Emerging trends in DD (e.g., ESG focus, digital tools).

Module 15: Case Studies and Practical Exercises in Due Diligence

• In-depth analysis of specific PPP projects and their DD challenges.
• Discussion of real-world DD findings and their impact on project outcomes.
• Workshop: Hands-on exercise in reviewing DD reports and identifying key risks.
• Role-playing scenarios for managing DD processes.
• Developing a comprehensive DD checklist for a hypothetical PPP project.

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.