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 an introduction to international project finance. It will focus on areas critical to the success and sustainability of major projects and will combine lectures with case studies to illustrate and develop the key concepts and techniques. Topics considered will include those listed in the course outline below.

Course Outline:

How to Negotiate a Bankable Concession or Contract

• The concept of bankability
• Dealing with lender concerns
• Negotiating contentious clauses, including termination provisions and compensation in event of termination, tariff and price adjustments, hardship and stabilization provisions, force major clauses and choice of law, choice of forum and dispute settlement

Credit Support Techniques

• Implementation agreements
• Contractual credit support
• Commercial and political risk insurance
• Specific risk, performance and credit guarantees
• Fiscal incentives and subsidies
• Government assurances on sensitive legal issues
• Trust accounts
• Use of derivatives

Dealing with Critical Non-Financial Issues

• Procurement
• Environment
• Resettlement
• Human rights
• Anti-corruption

The Role of Multilateral Development Banks

• Direct loans
• Types of guarantees and put options
• Intercreditor issues involving MDB's, including negative pledge clauses and preferred creditor status
• Technical assistance and training

Renegotiation and Restructuring

• Reasons projects encounter problems
• Mediation
• The workout process: standstill phase and restructuring of both financial and non-financial project documents
• Intercreditor issues in the workout phase