Fundamentals and Frameworks
- Introduction to Project Finance:Â Differentiating project finance from corporate finance, its unique structure (SPV), and why it is used for large-scale infrastructure.
- Project Structure & Participants:Â Identifying key stakeholders (sponsors, lenders, government, operators, contractors) and their distinct objectives and roles.
- The Project Lifecycle:Â Understanding the phases from initiation and feasibility analysis to financial close, construction, and operation.
Risk and Contractual Structuring
- Risk Identification and Allocation:Â Applying the fundamental principle of assigning risks (political, construction, market, operational, regulatory) to the party best equipped to manage them.
- Contractual Arrangements:Â Analyzing key project agreements, such as concession agreements, offtake contracts (Power Purchase Agreements), and construction/supply contracts.
- Security Packages & Guarantees:Â Exploring credit enhancements, insurance issues, and collateral structures that provide comfort to lenders.
Financial Modeling and Valuation
- Investment Criteria:Â Reviewing core metrics including Net Present Value (NPV), Internal Rate of Return (IRR), and Benefit-Cost Ratio.
- Cost of Capital:Â Calculating Weighted Average Cost of Capital (WACC) and understanding debt vs. equity sizing.
- Financial Modeling:Â Building a best-practice financial model to test sensitivities, run scenarios, and optimize debt structures