Overview

This course builds upon our Introduction to Project Finance module. While attendance at the introductory session is not a prerequisite, it is strongly recommended. We will explore key financial structuring challenges that typically emerge once the project’s commercial fundamentals and risks, covered in the first module, have been assessed.

Focusing on Public Private Partnerships (PPPs), this course will equip you with a comprehensive understanding of financial structuring. You will discover how the various components of the financing framework fit together to form a cohesive plan, and how to present that plan effectively to potential sponsors.

Why Should an Individual Attend?

• Bridge Public and Private Interests. Understand how both sectors evaluate investment opportunities, and apply financial analysis skills that speak the language of diverse stakeholders.
• Navigate Funding Procedures with Confidence. Explore proven techniques for raising capital and structuring infrastructure deals, enabling you to confidently approach sponsors and financial institutions.
• Develop a Risk-Ready Financial Strategy. Engage with real-world approaches to revenue regimes, value for money, and risk allocation in PPPs—equipping you to build resilient, cost-effective financial models.
• Advance Your Professional. Edge Leave with the ability to craft and present financing plans that maximize impact, align with project fundamentals, and elevate your credibility in high-stakes environments.

Outcomes

At the end of this course, the delegate should be able :

• Gain a solid understanding of how public and private sectors assess investment opportunities and conduct procurement for large-scale infrastructure projects.
• Learn how to design financial mechanisms that support complex project development—from feasibility through implementation.
• Execute Funding and Procurement Strategies Master the procedures and techniques required to raise capital efficiently, secure stakeholder buy-in, and align with legal and financial frameworks.
• Evaluate Commercial Feasibility and Value for Money Assess whether a project structure meets strategic, technical, and commercial criteria, while optimizing public benefit and minimizing cost.
• Understand Revenue Regimes and Financial Risks Explore how revenue models affect project sustainability and how financial risks are distributed among stakeholders in PPP arrangements.
• Construct a Resilient Project Company Framework Learn to build robust financial structures for the project company, ensuring adaptability, accountability, and long-term success.

Program Outline

Pillar 1: Overview of Commercial Feasibility

• Designing the Technical Requirements
• Project Design & Construction Requirements
• Performance Requirements & Operations and Maintenance Specifications
• Other Technical Assessment-Related Matters and Preparatory Activities
• Consideration of Risk in the Commercial Feasibility
• Estimating Risk-Adjusted Costs
• Key Points on Project Scope, Technical Requirements and Cost Assessment

Pillar 2: Preliminary Structure of the Financial Mechanism

• Designing a Preliminary Structure of the Financial Mechanism
• Revenue Regime
• Payment Mechanism
• Preliminary Risk Allocation
• Developing the Financial Model
• Sources of Information
• Macroeconomic Assumptions
• Estimates of Capital Expenditures
• Operating Costs and Reinvestments

Pillar 3: Financial Structure of the Project Company

• Alternatives to Commercial Banks
• Revenues
• Accounting Issues
• Issues Considered in Defining the Contract Term
• Cash Flow
• Base Case, Sensitivities and Scenarios

Pillar 4: Assessing the technical and commercial feasibilities

• Assessing the Technical Feasibility
• Technical Risks Associated with Infrastructure Initiatives
• Assessing the Commercial Feasibility
• Commercial Feasibility – Lenders’ Perspective
• Commercial Feasibility – Investors’ Perspective
• Factors that Affect Required Rate of Return
• Other Decision Drivers for Investors Analysing a Project’s Cash Flow
• Assessing Commercial Feasibility
• Outputs of the Commercial Feasibility Assessment
• Assessing Fiscal Feasibility

Pillar 5: Value for Money

• Value for Money Assessment
• Quantitative Value for Money Analysis

Pillar 6: Financial Structuring

• Financial Structuring (from the Public Perspective)
• Co-Financing
• Grant Financing
• Contract Development
• Hard or Soft Public Agency Loans
• Equity Participation by the Government
• Other Ways to Increase Financial Feasibility and Affordability

Pillar 7: Revenue Regimes in PPPs

• User-Pays Financial Structuring Matters
• Volume-Linked Payment Mechanisms
• Performance Correction
• Calibrating the Payment Mechanism
• Composition of the Payment in a Unitary Payment and Time Pro Rata
• Indexing the Payment
• Frequency of Payments and the Payment Calculation Process

Pillar 8: Dealing with Risks

• Risk Allocation versus Risk Structuring
• Risk Strategy – Public & Private Perspective
• Risk Matrix
• Quantitative Assessment and Appraisal
• Mitigation Measures
• Deciding on Risk Allocation
• Contractual Categories of Risks
• Risks During the Design and Construction Phase
• Risks During the Operating Phase
• Calculating the Compensation

Who Should Attend?

• Engineers
• Government and real estate officials
• Developers
• Architects
• Contractors
• Consultants
• Attorneys
• Other professionals involved in the public/private finance, development, & construction.