INTENDED
AUDIENCE: Policymakers; managers and directors of public enterprises; members of public enterprise reform and privatization agencies; legal, financial and regulatory advisors.
COURSE
OBJECTIVES: This course provides training in the design, negotiation
and financing of private participation in infrastructure and covers topics of interest to private sector
lawyers, contractors, bankers and accountants as well as government officials.
It uses case studies and mock negotiations to identify critical issues
related to the use of project finance techniques to fund PPPs.
Course
Outline:
Planning
for Private Participation
- General nature
of private infrastructure finance
- Lessons learned
from past policies and projects
- Strategic considerations
for the host government and for the private sector participant
- Identification
and preparation of individual projects
Design of Concession
and other PPP Agreements
- Legal and regulatory
framework
- Design of individual
agreements
- Special problems
of agreements with local authorities and other sub-national entities
- Key financial considerations,
including the concept of bankability
Negotiation of
Key Contract Clauses
- The negotiation
process
- How to
negotiate contentious clauses, including:
- clauses to
make a concession bankable;
- termination
provisions and compensation in event of termination;
- tariff and
price adjustment clauses;
- unilateral
change and economic hardship clauses;
- provisions
for government support;
- re-bidding
provisions;
- transfer of
assets at the end of the concession, and
- dispute settlement
clauses
Finance: Structure and Basic Techniques
- The concept of project finance
- Risk analysis and mitigation
- Legal structures
- Basic techniques
- Basic project documents
Finance: Arranging the Funding
- Source of finance
- Providing credit support and security for loans
- Financial documentation
Renegotiation
of Agreements
- Most common
reasons for renegotiation
- Alternatives
to renegotiation
- Types
of renegotiation
- Clauses
in the concession agreement to facilitate renegotiation
NOTE: It is recommended that participants of this course also take Advanced Project Finance.