Financial aspects of Public-Private Partnerships (PPP / PFI)

Background of project finance and PPP

• Definition of project finance
• Definition of PPP
• Project Finance Initiative

Implementation of partnerships contracts

• Contracts genesis

• Practical workshop

• Study of a contract
• Conditions of application
• Initial valuation

• Practical workshop

• Building a cash flows cascade
• Competitive dialogue and tender process
• Legal developments

Risk matrix in PPP

• Risk repartition
• Principles of rent calculation
• Penalties calculation

• Practical workshop

• Risk analysis
• Building a risk matrix
• Financial tools of PPP

• Practical workshop

• Example of a toll road
• Syndicated loans and other forms of senior debt
• Bond issuance
• Capital and quasi-capital
• Other types of PPP funding techniques

Hedging interest rate risk, main principles

• FRAs and Interest Rate Swaps
• Fixing a rate for a future loan
• Caps, floors, collars
• Swaptions

• Practical workshop

• Review of hedging strategies using FRAs, swaps, caps / floors

Guarantees

• Various types of guarantees
• Various mechanics for exercising step in rights

• Practical workshop

• Analyse a step in right covenant