Power Project Finance

Project finance is widely used for large infrastructure projects including thermal and renewable
power projects. The technique enables project risks to be allocated to the parties
best able to manage them and facilitates the raising of long-term debt without
recourse to the project developer.

The correct allocation of risk through an appropriate commercial structure is the foundation
of a sound financing plan and this course will develop these themes by walking through
the commercial contracts and finance documentation and provide an understanding
of how to determine the optimal amount of debt using cash flow and ratio
analysis. Current circumstances in the African power project sector will be
discussed.

Investment committees need to be sure that all risk aspects have been studied and the
course will detail the key elements of the due diligence exercise. The course
will also provide a guide on how to approach the debt market. 

Benefits of Attending

The course is intended to provide a firm understanding of the principles which create a bankable power project finance
structure in terms of risk allocation and the commercial and financial
structure. On completion of this course you will understand:

•          How a power project is structured and financed
•          How to identify power project risks and mitigation strategies
•          The role of the financial model and cash flow and ration analysis
•          Debt sizing techniques
•          Project finance term sheets and loan documentation
•          Contract documentation
•          The due diligence process
•          How to efficiently identify viable project prospects
•          How to approach the debt market

Topic Highlights with Case Studies 

Day 1:

1.          Power Project Commercial Structure
2.          Attributes of a Bankable Project
3.          Project Risk Identification and Evaluation
4.          Case Study Exercise: Preparation of a risk matrix

Day 2:

1.          Risk Mitigation
2.          Case Study: Examples of risk mitigation in the power sector
3.          Introduction to the Financial Model
4.          Financial Plan for the Project 

Day 3:

1.           Debt Structuring and Debt Sizing
2.          Case Study Exercise: Debt sizing and repayment profiling
3.          Project Opportunity Triage
4.          Case Study Exercise: Opportunity Triage

Day 4:

1.         Principal Commercial Project Contract – Key Features
2.          PPP Contract Structures
3.          Finance Documentation
4.          Case Study Exercise: Debt term sheet – bid preparation 

Day 5:

1.          Running the Due Diligence Process
2.          Case Study: Lessons learned
3.          Restructuring and Refinancing
4.          Debt Raising – How to Take Your Project to Market
5.          Case Study Exercise: Presenting to the investment committee 

Who Should Attend 

Including
but not limited to people working in: 

•          Power project developer, investor or financier
•          Finance & accounting
•          Project finance & structured finance
•          Power project management
•          Project analysis & development
•          Commercial & legal
•          Commercial services suppliers (law, insurance etc.)
•          Policy makers and policy advisors dealing with energy sector financial issues 

Teaching Methodology 

The course is interactive using a combination of lectures, case studies and workshop exercises. Questions and discussion are
encouraged to enable delegates to gain an understanding that will be
immediately useful in business. Subject to preserving confidentiality,
delegates are welcome to seek solutions to live situations.

Course Certificate 

Upon the successful completion of this course, you will receive a Certificate of Completion bearing the signatures from both the
Course Director and the Course Organizer. This Certificate will testify your
endeavour and serve towards your professional advancement.

To register/inquire, please contact:

Abigail Harris

Infocus International Group

Tel: +65 6325 0215 | Email: abigail [at] infocusinternational [dot] com

http://www.infocusinternational.com/powerprojectfinance