In the competitive landscape of infrastructure finance, mastering Developing Bankable PPP Projects is the ultimate goal for public authorities and private developers alike, as "bankability" signifies a project's attractiveness to lenders and investors, ensuring it can secure the necessary financing on commercially viable terms to move from concept to successful implementation. A truly bankable PPP project demonstrates robust technical feasibility, strong financial viability, effective risk allocation, a supportive legal framework, and a clear revenue stream, thereby minimizing perceived risks for financiers and maximizing the likelihood of successful financial close. This comprehensive training course is meticulously designed to equip public sector officials, project developers, financial institutions, and legal professionals with the advanced knowledge and practical strategies required to structure, appraise, and present PPP projects in a manner that meets the stringent requirements of debt and equity providers, transforming promising ideas into fundable realities. Without robust expertise in Developing Bankable PPP Projects, stakeholders risk project delays, failed procurements, and a fundamental inability to mobilize the private capital essential for critical infrastructure development, 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 responsible for project preparation
• Private Sector Project Developers, Sponsors, and Investment Managers
• Commercial Bankers, Project Finance Lenders, and Credit Analysts
• Equity Investors and Infrastructure Fund Managers
• Financial Advisors and Consultants specializing in project finance
• Legal Professionals advising on project finance and security packages
• Risk Managers and Due Diligence Specialists
• Development Finance Institutions (DFIs) and Multilateral Development Banks (MDBs) staff
• Anyone involved in the financial structuring, appraisal, or funding of PPP projects.

Objectives

• Understand the concept of "bankability" and its paramount importance in PPP project development.
• Learn about the key elements that lenders and investors scrutinize in a PPP project.
• Acquire skills in structuring robust financial models for PPP projects.
• Comprehend techniques for optimizing project revenues and managing operating costs.
• Explore strategies for efficiently allocating and mitigating project risks to enhance bankability.
• Understand the importance of a strong legal and regulatory framework for investor confidence.
• Gain insights into designing effective security packages for debt financing.
• Develop a practical understanding of credit enhancement mechanisms and government support.
• Master the art of preparing compelling project information memoranda and investor presentations.
• Acquire skills in navigating the financial close process and satisfying conditions precedent.
• Learn to apply international best practices and lessons learned from successful bankable PPPs.
• Comprehend techniques for addressing currency risk and macroeconomic stability.
• Explore strategies for ensuring long-term fiscal affordability and value for money.
• Understand the importance of environmental, social, and governance (ESG) factors in bankability.
• Develop the ability to lead and implement effective strategies for Developing Bankable PPP Projects.

Course Content

Module 1: Introduction to Project Bankability

• What is "bankability" and why it matters to all PPP stakeholders.
• Perspectives of lenders, equity investors, and public authorities.
• Consequences of non-bankable projects: delays, failed procurements, increased costs.
• Key drivers of bankability: risk allocation, revenue certainty, legal framework.
• Overview of the financial close process.

Module 2: Project Identification and Feasibility for Bankability

• Linking early project identification to bankability considerations.
• Role of comprehensive feasibility studies in demonstrating project viability.
• Technical feasibility: proven technology, constructability, operational efficiency.
• Environmental and social feasibility: compliance with standards, mitigation plans.
• Market demand analysis: robust revenue projections.

Module 3: Financial Modeling for Bankability

• Structure of a PPP financial model: inputs, assumptions, outputs.
• Key financial metrics: IRR (Equity & Project), NPV, DSCR, LLCR, PLCR.
• Revenue streams: user fees, availability payments, subsidies.
• Operating costs, capital expenditure, and debt service calculations.
• Sensitivity analysis and scenario planning to stress-test financial viability.

Module 4: Risk Allocation and Mitigation for Lenders

• Lenders' perspective on project risks: construction, operational, demand, political, financial.
• Efficient allocation of risks to the party best able to manage them.
• Contractual mechanisms for risk transfer and sharing.
• Role of government undertakings and support in de-risking.
• Impact of risk allocation on debt pricing and tenor.

Module 5: Debt Structuring and Sources of Finance

• Types of debt: commercial bank loans, bond financing, DFI loans.
• Tenor, pricing, and repayment profiles of debt.
• Syndicated loans and club deals.
• Role of export credit agencies (ECAs) and multilateral development banks (MDBs).
• Local currency financing and hedging strategies.

Module 6: Equity Structuring and Investor Requirements

• Types of equity investors: infrastructure funds, pension funds, strategic investors.
• Equity return expectations and investment horizons.
• Shareholder agreements and corporate governance.
• Role of sponsor support and guarantees.
• Attracting diverse equity participants.

Module 7: Security Package and Collateral

• Purpose of a security package for lenders.
• Types of collateral: pledges over shares, assignments of contracts/revenues, mortgages over assets.
• Intercreditor agreements for multiple lenders.
• Direct agreements with the public authority (step-in rights, cure periods).
• Perfection and enforceability of security interests.

Module 8: Credit Enhancement Mechanisms

• Types of credit enhancements: government guarantees (e.g., minimum revenue, debt service).
• Subordinated debt and quasi-equity.
• Insurance products: political risk insurance, credit insurance.
• Blended finance: combining concessional and commercial finance.
• Role of MDBs in providing guarantees and co-financing.

Module 9: Legal and Regulatory Framework for Bankability

• Importance of a clear, stable, and predictable legal framework.
• Legal enforceability of contracts and security documents.
• Regulatory certainty: tariff frameworks, licensing, dispute resolution.
• Foreign investment laws, tax regimes, and currency convertibility rules.
• Compliance with international best practices.

Module 10: Fiscal Sustainability and Affordability

• Assessing the public sector's fiscal capacity and long-term commitments.
• Managing contingent liabilities and budgetary implications.
• Ensuring affordability for end-users and social equity considerations.
• Policy on government support and subsidies.
• Transparency in fiscal reporting.

Module 11: Preparing Information Memoranda and Investor Presentations

• Structuring a compelling Information Memorandum (IM) for potential investors.
• Key sections of an IM: project overview, technical, financial, legal, risk.
• Designing effective investor presentations and pitch decks.
• Data room preparation and due diligence process management.
• Communication strategies for attracting finance.

Module 12: Environmental, Social, and Governance (ESG) Factors

• Importance of ESG compliance for bankability and sustainable finance.
• Lenders' and investors' ESG requirements and due diligence.
• Integrating environmental and social impact assessments (ESIAs).
• Governance structures for project oversight and accountability.
• Reputational risk management.

Module 13: The Financial Close Process

• Key milestones from preferred bidder to financial close.
• Satisfying conditions precedent (CPs) to financing.
• Managing multiple legal and financial documents.
• Roles of financial advisors, legal counsel, and technical experts.
• Common reasons for financial close delays and how to avoid them.

Module 14: Post-Financial Close Monitoring for Bankability

• Ongoing monitoring of project performance against financial covenants.
• Managing variations and renegotiations that impact bankability.
• Reporting requirements to lenders and equity investors.
• Early warning systems for potential financial distress.
• Strategies for refinancing and project restructuring.

Module 15: Practical Workshop: Bankability Assessment and Strategy

• In-depth analysis of a hypothetical PPP project and its bankability challenges.
• Group exercise: Conduct a bankability assessment, identifying strengths and weaknesses.
• Develop a strategy to enhance the project's bankability, including risk mitigation and financial structuring.
• Prepare a mock investor pitch or a section of an Information Memorandum.
• Peer review and discussion on real-world bankability 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.