For Public-Private Partnerships (PPPs), the negotiation phase is a pivotal and often protracted period where the theoretical framework of a project transforms into a legally binding, bankable agreement, making mastery of Negotiation Strategies for Successful PPP Closures absolutely critical for achieving optimal outcomes for all parties. Unlike traditional contracting, PPP negotiations involve multiple complex stakeholders—public authorities, private sponsors, lenders, and advisors—each with distinct interests, requiring sophisticated tactics to bridge gaps, allocate risks, and finalize intricate financial and contractual terms under significant pressure. This comprehensive training course is meticulously designed to equip public sector officials, project developers, financial advisors, and legal professionals with advanced negotiation theories, practical strategies, and real-world case studies, enabling them to confidently lead, participate in, and successfully conclude complex PPP negotiations that deliver value for money, ensure bankability, and foster long-term partnership. Without robust expertise in Negotiation Strategies for Successful PPP Closures, parties risk suboptimal agreements, costly delays, or even project failure, underscoring the vital need for specialized expertise in this critical domain.

Duration: 10 Days

Target Audience

• Public Sector Negotiators from PPP Units, Ministries of Finance, and Sectoral Ministries
• Private Sector Project Developers and Sponsors
• Financial Advisors and Modellers involved in negotiation
• Legal Professionals specializing in PPP contracts and project finance
• Investment Bankers and Lenders' Representatives
• Procurement Specialists involved in post-bid negotiation
• Senior Project Managers (public and private side)
• Consultants providing negotiation advisory services
• Anyone involved in the final stages of PPP project structuring and closing.
• Professionals seeking to enhance their negotiation skills in complex, multi-party environments.

Objectives

• Understand the unique characteristics and complexities of PPP negotiations.
• Learn about different negotiation theories and approaches (e.g., principled negotiation).
• Acquire skills in preparing comprehensively for PPP negotiations.
• Comprehend techniques for managing multiple stakeholders and their diverse interests.
• Explore strategies for effective communication and active listening in negotiations.
• Understand the importance of value creation and win-win outcomes in PPPs.
• Gain insights into negotiating key contractual terms (risk allocation, payment, termination).
• Develop a practical understanding of financial model negotiation and bankability.
• Master tactics for addressing impasses, deadlocks, and difficult negotiators.
• Acquire skills in managing the negotiation process and timeline efficiently.
• Learn to apply international best practices and lessons learned from PPP negotiations.
• Comprehend techniques for ensuring transparency and integrity in negotiations.
• Explore strategies for documenting negotiation progress and decisions.
• Understand the importance of building trust and long-term relationships.
• Develop the ability to lead and successfully conclude complex PPP negotiations.

Course Content

Module 1: Introduction to PPP Negotiations

• The critical role of negotiation in the PPP lifecycle.
• Unique characteristics of PPP negotiations: multi-party, long-term, high stakes, complex.
• Objectives of negotiation for public and private sectors.
• Common challenges and pitfalls in PPP negotiations.
• The concept of "negotiating to close" vs. "negotiating to win."

Module 2: Negotiation Theories and Approaches

• Positional bargaining vs. principled negotiation (interest-based negotiation).
• Concepts of BATNA (Best Alternative to a Negotiated Agreement) and ZOPA (Zone of Possible Agreement).
• Distributive vs. integrative negotiation strategies.
• Game theory principles in negotiation.
• Applying different approaches in PPP contexts.

Module 3: Comprehensive Negotiation Preparation

• Defining clear negotiation objectives and priorities for each party.
• Detailed analysis of the Request for Proposals (RFP) and bid submission.
• Thorough review of the financial model and key assumptions.
• Understanding the other party's interests, constraints, and BATNA.
• Developing a negotiation strategy and fallback positions.

Module 4: Managing Multiple Stakeholders and Their Interests

• Identifying all internal and external stakeholders (e.g., line ministry, finance ministry, lenders, sponsors).
• Analyzing their diverse interests, priorities, and red lines.
• Building consensus and alignment within one's own team.
• Strategies for managing inter-agency coordination (public side).
• Engaging with lenders and their specific requirements.

Module 5: Communication and Interpersonal Skills in Negotiation

• Active listening and effective questioning techniques.
• Non-verbal communication and body language.
• Building rapport and trust.
• Managing emotions and maintaining composure under pressure.
• Strategies for persuasive communication.

Module 6: Negotiating Key Contractual Terms (Part 1: Core)

• Risk allocation: reconfirming and refining risk transfer mechanisms.
• Scope of services and output specifications.
• Performance indicators and service level agreements (SLAs).
• Payment mechanisms (e.g., availability payments, tariffs, deductions).
• Term of the concession and extension provisions.

Module 7: Negotiating Key Contractual Terms (Part 2: Contingencies & Termination)

• Force Majeure clauses and their implications.
• Change in Law provisions and compensation mechanisms.
• Default and termination clauses: events, remedies, compensation.
• Step-in rights for public authority and lenders.
• Renegotiation triggers and processes.

Module 8: Financial Model Negotiation

• Understanding the financial model as a negotiation tool.
• Negotiating key financial assumptions (e.g., inflation, discount rates, FX rates).
• Impact of contractual terms on financial ratios (DSCR, IRR).
• Sculpting debt repayment profiles.
• Managing refinancing gains and losses.

Module 9: Legal Aspects of Negotiation

• Legal authority to negotiate and bind the parties.
• Role of legal advisors in negotiation.
• Drafting and reviewing negotiation minutes and term sheets.
• Ensuring consistency between negotiation outcomes and final contract.
• Avoiding legal pitfalls during negotiation.

Module 10: Addressing Impasses, Deadlocks, and Difficult Negotiators

• Identifying signs of an impasse.
• Strategies for breaking deadlocks (e.g., focusing on interests, changing the team).
• Dealing with aggressive or uncooperative negotiators.
• Utilizing third-party facilitators or mediators for impasses.
• Knowing when to walk away (exercising BATNA).

Module 11: Managing the Negotiation Process and Timeline

• Setting realistic negotiation timelines and milestones.
• Structuring negotiation sessions effectively.
• Data management and information exchange during negotiation.
• Documenting negotiation progress and decisions.
• Ensuring a disciplined and efficient process.

Module 12: Transparency and Integrity in Negotiations

• Importance of transparency in the negotiation process (within legal limits).
• Preventing corruption, undue influence, and conflicts of interest.
• Ethical conduct for all negotiators.
• Maintaining fairness and equal treatment for shortlisted bidders.
• Public disclosure of negotiation outcomes.

Module 13: Building Trust and Long-Term Relationships

• The importance of trust in long-term PPPs.
• Strategies for building and maintaining trust during negotiation.
• Fostering a collaborative mindset.
• Understanding the other party's long-term objectives.
• Laying the groundwork for effective post-award partnership.

Module 14: International Best Practices and Lessons Learned

• Review of negotiation guidelines from international organizations.
• Comparative analysis of negotiation approaches in different jurisdictions.
• Lessons learned from successful and challenging PPP negotiations globally.
• Case studies of complex negotiation scenarios and their outcomes.
• Adapting global best practices to specific project and country contexts.

Module 15: Case Studies and Practical Negotiation Exercises

• In-depth analysis of specific PPP negotiation case studies.
• Role-playing simulations of challenging negotiation scenarios.
• Workshop: Hands-on practice in negotiating key PPP contract clauses.
• Feedback and debriefing on negotiation performance.
• Developing a personal negotiation action plan for PPPs.

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.