Project Finance Techniques: Applications and Recent Developments

Overview

The Project Finance Techniques: Applications and Recent Developments seminar introduces: (1) the basic concepts and techniques of project finance; and (2) the current application of these techniques to the funding of PPP and other projects in infrastructure and other key economic sectors. It will focus on areas critical to the success and sustainability of major projects and will combine lectures with case studies to illustrate key concepts and techniques. Topics considered will include those listed in the course outline below.

The seminar runs concurrently with the ILI Public Private Partnerships and Infrastructure Finance seminar and may run relevant sessions jointly.

Certification

Upon successful completion of the seminar, each participant will be awarded a Certificate of Completion. Successful completion requires that a participant diligently attend all seminar sessions promptly and on time throughout the seminar, read all assignments, and participate in all group discussions and exercises. If a number of sessions are missed without proper reason, the ILI reserves the right to withhold certification.

Format

This seminar is currently offered in-person. Special requests to attend online must be submitted by email as early as possible. Requests will be considered on a case-by-case basis, taking into account the overall experience of each participant and the larger group. In-person seminars, even when being joined online, run from 9:30 am – 4:00 pm Washington, D.C., time.

Course Outline

Structure and Basic Technique

• The concept of project finance
• Critical role of project preparation, risk analysis and due diligence
• Stages of a project finance transaction
• Legal structures and basic documentation

How to Negotiate Bankable Project Documents

• The concept of bankability
• Dealing with lender concerns
• Identification and negotiation of key contract clauses

Arranging Finance

• Sources of finance
• The role of public sector lenders (MDB’s, ECA’s and DFI’s)
• Providing credit support and security for loans
• Developing a finance plan

Financial Documentation

• The basic loan agreements
• Ancillary loan documentation: common agreement; project accounts; security documents; and intercreditor agreement

Dealing with Critical Non-Financial Issues

• Procurement
• Environment
• Resettlement
• Human rights
• Corruption

Renegotiation, Restructuring and Dispute Settlement

• Reasons project finance transactions encounter problems
• The workout process: standstill concept
• The special problems of project finance dispute settlement

Course Advisor

Carol Mates is an attorney specializing in business transactions/international development finance/project finance with three decades experience at International Finance Corporation (IFC), the private-sector financing arm of the World Bank Group, as well as prior experience at US law firms and the legal department of US-based multinational bank and, post-retirement from IFC, the United States Agency for International Development (USAID).