Project Finance Foundations Brochure

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  • 1. Project FinanceFoundationse-learning at your fingertips... when you need itProject Finance Foundations is the most comprehensive e-learning Course StructureProject Finance Course available in the market today that is designed for The Course is made up of 7 core modules: practitioners, utilises adult learning principles and leverages the power of Introduction to Project Financemulti-media to provide a stimulating and effective learning experience. Project Risks Understanding Project Finance Models Raising Finance Revenue Agreements EPC, O&M and Input Supply Contracts Finance Documentation Learning is reinforced through Quizzes, Interactions and Checklists. The Learner is placed in the position of someone negotiating a transaction and asked to respond to negotiating points raised by various participants. Learners get to complete a Risk Matrix, mark up a Term Sheet and walk through the logic of a Project Model. The Course is available as individual modules or as a complete package.The genesis of this Course was the persistent frustration I heard expressed by SeniorTransaction Leaders, and the Junior Staff members who supported them, about the lackof practical training options that delivered value for money. Most institutions I worked with Who should take this Course? defaulted to on the job training to skill up their staff. Financiers involved in Project Finance However, on the job training has its own challenges and shortcomings. Transaction Leaders Syndication Staffare often overstretched and simply do not have the time to pay proper attention to training. They Agency and Credit Staffalso expect Junior Staff to have a certain base level of knowledge. On the other hand, Junior Government Executives involved in assessingStaff members can be reluctant to ask questions and a lot depends on what transactions they Project Finance Transactions work on and who they work with. It can be a frustrating experience for all parties concerned. Investment Bankers I believe an e-learning Course that covers the Foundational Principles of Project Finance and Bond Investors / Fund Managers sits on the desktop of each member of the team solves these problems. It is a teaching aid, Advisors and Project Finance Consultants a reference and a safe place to test understanding and knowledge. It reduces the burden Insurance Providerson Senior Transaction Leaders to train Junior Staff. It allows fresh graduates and junior team Project Sponsors members to quickly move up the learning curve so they can start to add value within months Export Credit Agencies of joining a team. no absence from the office is required and learning can happen right in the Contractorsmiddle of a transaction. Moreover, engagement with the training material and the learning Lawyers involved in Project Financeacquired can be measured and assessed. TransactionsOn every count, this is a superior method of training, especially when it is used together withon the job training. It is my sincere hope that this Course will fill an existing gap in ProjectFinance Training.Atul Ahuja

2. www.learnprojectfinance.comModule 1: Introduction to Project FinanceObjectives: The objective of this module is to introduce the learnerto the world of Project Finance and provide an understanding of thewho, why, where, when and how of project finance transactions. Thismodule is also suitable on a stand-alone basis for those seeking abroad overview of Project Finance.Topics Covered: What is Project Finance, Project Finance Structures,Creating bankable cash flow, Project Finance Contracts, ProjectFinance Sectors, Life Stages of a Project, Public Sector Procurement,Project Finance Participants, Project Finance Sponsors, Project Risks,Advantages of Project Finance, Disadvantages of Project Finance.Methodology: new material and concepts are introduced usingvarious interactive elements and understanding is reinforced throughquizzes. Module 2: Project Risks Objectives: The objective of this module is to provide the learner with a thorough understanding of Project Risks. Material is provided at increasing levels of detail, allowing the user to determine the depth of their learning. The logic behind the allocation of risk between the main project participants is also discussed. Topics Covered: Frameworks for Risk Management including the four main strategies of Risk Transfer, Risk Avoidance, Risk Control and Risk Retention. Main Project Risks including Construction Risk, Force Majeure Risk, Political Risks, Infrastructure Risk, Interest Rate Risk, Currency Risk, Inflation Risk, Revenue/ Demand Risk, Operating Risk, Input Supply Risk, Legal Risk, Environmental Risk, Refinancing Risk, Technology Risk, Contract Mismatch Risk and Participant Risk. Factors that influence risk allocation between Project participants. Methodology: A template Risk Matrix is included in this module and the learner is asked to complete the Risk Matrix for a hypothetical project. Concepts are reinforced through the use of multiple interactive elements and quizzes.Module 3: Raising FinanceObjectives: The objective of this module is to introduce the learnerto various sources of Project Finance and the mechanics of raisingfinance from each of these sources. It also covers the fundamentals ofdebt sizing and structuring.Topics Covered: Designing the Finance Package, Sources of Finance,Due Diligence, Debt Sizing, Structuring Bank Debt, Structuring BondFinance, ECA Finance, Multilateral Funding, Loan Covenants, Securityand Inter-Creditor Issues.Methodology: Concepts are introduced and reinforced throughmultiple interactive elements and quizzes throughout the module.Phone: +61 2 8211 0590 Facsimile: +61 2 8211 0555 Email: 3. www.learnprojectfinance.comModule 4: Understanding Project Finance ModelsObjectives: The objective of this module is to provide the learner witha thorough understanding of Project Finance Models and how theyare structured.Topics Covered: Nine core components of financial models, Linkagesbetween the components, Construction Costs Module, ConstructionFunding Module, Term Debt Module, Revenues Module, OperatingCosts Module, Depreciation Module, Future Capex Module, TaxModule, Project Cash flow Module, Using Financial Models.Methodology: An Excel Model is provided along with a step by stepexplanation of the calculation logic. The learner is encouraged to learnby reviewing the model, understanding the logic and replicating themodel provided. Various concepts are reinforced through quizzes. Module 5: Revenue Agreements Objectives: The objective of this module is to introduce the learner to the main clauses found in Revenue Agreements such as Power Purchase Agreements. The module also discusses the flow-on effects of these clauses to other contracts and the finance structure. Topics Covered: Term of Contract, Conditions Precedent, Construction Milestones, Consequences of Delay, Design and Construction Obligations, Operating Protocols, Tariff Structure, Performance Testing and Tariff Adjustments, Expansions and Modifications, Insurance Requirements, Force Majeure, Step In Rights, Change in Ownership, Change of Law, Default and Termination. Methodology: Concepts are introduced and reinforced throughout the module by the use of interactive elements, quizzes and by requiring the learner to respond to various scenarios.Phone: +61 2 8211 0590 Facsimile: +61 2 8211 0555 Email: 4. www.learnprojectfinance.comModule 6: EPC, O&M, Input Supply ContractsObjectives: The objective of this module is to introduce the learnerto the main clauses found in the EPC Contract, the O&M Contractand Input Supply Contracts. The module also discusses the flow-oneffects to other contracts and the financing structure.Topics Covered:Construction Contracts:Types of Construction Contracts, Contract Scope, Contract Price andPayments, Completion and Liquidated Damages, Security, Eventsof Default and Termination, Dispute Resolution, Construction PhaseInsurances, EPC Checklist, Other Commercial Terms.O&M Contracts:Types of O&M Contracts, O&M Contractor Roles, Project CompanyRoles and Responsibilities, Fee Structures, Performance andLiquidated Damages, Events of Default and Termination, OperatingPhase Insurances, O&M Contract Checklist, Other TermsInitial Supply Contracts:Input Supply Contracts, Start Date and Term, Contract Volumesand Flexibility, Quality, Price and Payments, Events of default andtermination, Fuel Supply Contract Checklist, Other TermsMethodology: Concepts are introduced and reinforced throughoutthe module by the use of interactive elements, quizzes and by requiringthe learner to respond to various scenarios.Module 7: Finance DocumentationObjectives: This module introduces the learner to financedocumentation typically used in Project Finance transactions. It alsocovers the terms found in each of the documents.Topics Covered: Letter of Interest, Commitment Letter, Term Sheet,Credit Facility, Working Capital Facility, Security Trust Deed, SecurityDocuments, ISDAs and Hedge Documents.Methodology: Concepts are reinforced through quizzes. The learneris asked to mark up a Term Sheet.Customise your training...If you would like the content of this Course to be customised to meet your needs, Email us at for moreinformation.Phone: +61 2 8211 0590 Facsimile: +61 2 8211 0555 Email: 5. www.learnprojectfinance.comHow it works1. Select the Course/Module(s):You have 3 options to choose from: Buy the full Course Buy the Introductory Package (Modules 1-4) Buy one or more specific Modules There is a price discount if you buy the full Course.2. Sign On:Once you have selected the module/package you wish to purchase, you can: Log on to our website at and sign up with your credit card through our secure check-out system with PayPal