Overview

This course provides an introduction to: (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 below.

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).