project-finance-nyc

Project Finance & PPP Advanced Modeling
NYC
May 19th & 20th

$2,950.00

  • Location: NYC
  • Dates: May 19th & 20th 2016
  • Use Early Bird Discount Code (expires 4/15/16) 20160415
  • Create models that are easy to navigate without forfeiting proper deal sophistication and analysis
  • Produce a robust model from feasibility stages through project documentation to financial close
  • Identify and quantify the risks of the project through the model – from sponsor, participant and lender viewpoints
  • Learn the power of “negotiating off the model” instead of “modeling off the negotiations”
  • Enhance spreadsheet analysis, presentation and negotiations
  • Employ Monte Carlo Simulations
  • Engage in current commercial discussions with active project developer / financial advisor
SKU: PPP-NYC-May-2016 Categories: , ,

Product Description

WHO SHOULD ATTEND

Financial Analysts, Investment & Evaluation Professionals, Business Development Planners, Mergers & Acquisitions Specialists, Accountants, Infrastructure Heads, Corporate & Structured Finance Teams, Joint Ventures Specialists, CFOs, Financial Directors

MODELING SKILL LEVEL

Advanced

OBJECTIVES

People do not sign models – They sign the contracts that those models represent. Project Finance and PPP Advanced Modeling is a Vair Training Master Class that focuses uniquely on PF and PPP projects and their related modeling and legal issues. After reviewing some basic elements of project finance and factors that separate PPP from traditional infrastructure and project financing, course participants are given a full suite of project documents and macroeconomic information that are indicative to infrastructure projects. This is followed by a step-by-step procedure of building a complex model for a concessionaire bid. This phase of the program demonstrates how to dovetail contracts and models and shows that nothing in PF/PPP is mutually exclusive.

Once completed, delegates review the model from a due-diligence analysis, usually taken from a government, lender or thirdparty equity perspective. The final phase of this module uses sophisticated model techniques to help the practitioner “price the deal” and “negotiate off the financial model”. Special consideration is given to more advanced PF/PPP issues like liquidated-damages analysis, drop-down and direct agreements, and appropriate security packages. The course?s overriding theme is to use the model as a highly-developed financial analysis tool that reviews the appropriate risk-versus-reward profiles of project finance. (This is an advanced course and is geared to the intermediate-to-advanced delegate.)

Learn to analyze and model project documents including RFPs, Project Agreements, Guaranteed Price Contracts, Lenders’ Direct Agreements, Value-for-Money Reports…and much more!

OUTLINE

Part 1 Project Finance for PPP
Part 2 The Role of the Model and Common Rules
Part 3 The Risk Matrix
Part 4 Introduction of a Project for Modeling
Part 5 Legal Due Diligence, Documentation, Permitting and Structuring
Part 6 The Assumption Page
Part 7 Revenue: Availability vs. Service and Unitary Payment
Part 8 Operations
Part 9 Construction
Part 10 Insurance
Part 11 Taxes
Part 12 Depreciation
Part 13 Financing
Part 14 The Income Statement
Part 15 The Balance Sheet
Part 16 The Statement of Cash Flows
Part 17 Equity Returns
Part 18 Loan Values
Part 19 “Pricing the Deal” and Analysis
Part 20 Documenting Changes to the Model
Part 21 Analysis of Liquidated Damages (“LD”), Asset Renewal and Lifecycle Reserves
Part 22 Monte Carlo Simulations
Part 23 Legal Analysis: Financing Issues, Regulatory and Political Aspects
Part 24 Financing Different Types of Projects
Part 25 Impact of Government-Supported Financing
Part 26 Covenants and the Model
STRUCTURE

As with our all our financial modeling courses, this is a hands-on practical course, whereby the delegate takes our “learn by doing” approach. The course structure for each module follows a four-step pattern: 1) presenting the section material, 2) a spreadsheet exercise, 3) review of the exercise; then 4) follow-up with a question and answer session. Each successive session builds from the previous session. Each participant will be given exercise and review files to insure course fluidity, no matter the participants’ background or level.

Participants go through the process of building a fairly complex model step-by-step using a series of project document tariff sheets and macroeconomic information. This phase takes an equity view of the model. Next, the course reveals the power of the model by applying it to different perspectives, such as that of project lenders or equity holders. The third phase of the course uses more sophisticated modeling techniques, such as tables, goal searches and Solver, as well as discussion of Monte Carlo simulations.

(NB: Prerequisite – A general knowledge of Excel, accounting principals and financial modeling is a minimum requirement for this course; particularly, the ability to generate a Statement of Cash Flows from an Income Statement and Balance Sheet. It is strongly suggested that those delegates with limited financial modeling experience consider taking Vair’s Financial Statement Modeling and Analysis course)

VENUES

Vair Training courses are held at world-class international venues. Registration fees include morning coffee/tea, networking lunches and afternoon refreshments. Course materials are provided electronically on-site. Detailed venue descriptions, times and logistics are included with post-registration materials and documents.

PRICING

2-day Public Courses are US$2,950 per delegate. Fees include all course materials and training. 10% Early-Bird Discounts are applied to registrations and payments received at least 8 weeks prior to individual courses. Additionally, 10% Combo-Course Discounts are applied when the same delegate registers for back-to back courses delivered on consecutive dates. Group-Rates Discounts are also available: please inquire +1 404 512 5936 or info@vaircompanies.com

Syllabus

Part 1 – Project Finance vs. Corporate Finance

  • Corporate finance is a balance sheet exercise
  • Project finance is a cash flow exercise
  • “Cash is King”
  • The Time Value of Money (“TVM”)
  • “A Dollar Day Is Worth More Than A Dollar Tomorrow”

Part 2 – The Role of the Model & Common Rules

  • Reflection of the Project & Financing Documents
  • An easily manipulated model to reflect changes in the deal
  • A tool to support negotiations
  • “Always negotiate off the model and never model off the negotiations”
  • Run different cases and scenarios
  • Essential model layouts and rules

Part 3 – The Risk Matrix

  • What is Risk?
  • A statistical perspective
  • A level view of risk
  • Risk is not pejorative
  • What is Reward?
  • Does the reward adequately compensate the risk?
  • “Beauty is in the Eye of the Beholder”
  • How do we approach risk from a modeling standpoint?
  • Matching risk mitigation with documents and cash flow

Part 4 – Introduction of a Project for Modeling

  • The project structure and the model
  • Project Documents are financed, not models
  • Appropriately representing document structures in the financial model
  • Nominal versus real models
  • Real models underestimate real cash taxes

Part 5 – The Project Documents

  • Overview of the major Project Documents used for the modeling exercise
  • Which documents can be modeled and which cannot?
  • How to translate these Documents to the model

Part 6 – The Assumption Page

  • Off-take Contract
  • Capacity payments vs. variable-based payments
  • Concept of time-based versus unit-based contracts
  • The cornerstone contract to high-leverage project finance structuring
  • Operational Contract
  • Construction Contract
  • Fully wrapped contracts versus cost-plus contracts
  • Supply/Raw Materials Contract
  • Reserve contracts versus supply contracts
  • Financial Term Sheets
  • Including quantitative elements of security packages
  • Project Taxes
  • Development and construction taxes
  • Operational taxes
  • Impact of depreciation on operational taxes
  • General Macroeconomic Indicators & Currencies
  • Inflation and escalation impact
  • Purchasing power parity (“PPP”)
  • Capital Costs & Project Timing

Part 7 – Operations

  • Correctly matching units
  • Crossing out appropriate units and tariffs to arrive at cash
  • Fixed and variable costs
  • Matching cost drivers to revenue drivers
  • Escalation factors
  • “How many angels are on a pinhead?”
  • Operational taxes
  • Accurately assigning appropriate taxes

Part 8 – Construction

  • Various draw profile & timing
  • Equity first
  • Pro-rata
  • Philosophy on timing returns and risk vis-à-vis construction draws
  • Interest During Construction (“IDC”) & Commitment Fees
  • Contract splitting for on- & off-shore costs

Part 9 – Insurance

  • Construction
  • Operation
  • The role in the Security Package

Part 10 – Taxes

  • Identifying and negotiating tax holidays
  • Matching appropriate domestic and foreign taxes in the model

Part 11 – Depreciation

  • Different modeling techniques
  • The “Trapped Cash” dilemma
  • Thin-Capitalization issues

Part 12 – Financing(s)

  • Circularity
  • Debt profiles
  • Mortgage, or annuity, style
  • Level-Principal style
  • Sculpted debt
  • Currencies
  • Matching currencies to revenue drivers
  • The FX dilemma, forecasting future spot rates
  • Repayment terms (including grace periods)
  • Escrow accounts/funding and/or Letter of Credit
  • Model switches and masks
  • Coverage ratios

Part 13 – The Income Statement

  • Flow of information from worksheet tabs to the Income Statement

Part 14 – The Balance Sheet

  • Balance checks
  • Addressing Working Capital in the Current Accounts
  • Flow of information from worksheet tabs to the Balance Sheet

Part 15 – The Statement of Cash Flows

  • Flow of information from worksheet tabs to the Statement of Cash Flows
  • Waterfall of payments
  • Trapped Cash
  • Cash accounts and distributions
  • Issues related to retained earnings

Part 16 – Equity Returns

  • IRR calculations
  • Addressing NPV and Weighted Average Cost of Capital (“WACC”)
  • Theory versus reality
  • “Don’t give away the farm”

Part 17 – Loan Values

  • Calculating present value of the loan
  • Calculating average loan life

Part 18 – “Pricing the Deal” and Scenario Analysis

  • Review potential risks in the equity model and project documents
  • The equity’s view
  • Lenders’ view
  • The other participants’ views
  • Refining role of a risk matrix and reflection in the model

Part 19 – Monte Carlo Simulations

Part 20 – Documenting Changes to the Model

  • Downside, Base and Upside Cases
  • How to use the model to price and negotiate
  • (a) Tables
  • (b) Goal seeking
  • (c) Logic functions
  • Analysis of Liquidated Damages (“LD”)
    • Delay in Start-up
    • Shortfalls in Performance
    • Calculate and analyze if they are sufficient in terms of the risk
  • Summary, questions and discussions

Instructor

chip-bio

Charles T. “Chip” Haskell, Jr.

Charles T. “Chip” Haskell, Jr., is a Managing Director with The Vair Companies. The Vair Companies specializes in financial and development services for the international infrastructure sector. Chip is also the author of Advanced Modelling for Project Finance for Negotiations and Analysis by Euromoney Books (ISBN 1-84374-214-4).

Before joining The Vair Companies, Chip was a Director with Mirant, based in Amsterdam. Mirant is one of the leading independent energy companies in the world. There he was the functional lead on all aspects of asset development for both greenfield development and acquisition activities for EMEA.

Prior to joining Mirant, Chip was a Manager with Wärtsilä Development and Finance, the in-house developer for one of the world’s largest manufacturers of utility grade diesel engine power plants. His responsibilities were primarily focused in South America.

While a graduate student, Chip interned as a financial analyst with the Overseas Private Investment Corporation of Washington, D.C.; and, with the United States Department of Commerce’s Foreign Commercial Service in Lima, Peru, working on the Camisea gas fields.

Chip has a BA in Economics and French from Hanover College, a MA in French from Middlebury College and a Masters in International Finance and Accounting from Thunderbird, The American Graduate School of International Management. He is a US citizen, authorized to work in the EU. He is fluent in French and Spanish and has a strong working knowledge of several European languages.

Testimonials

“Such a passionate instructor with undeniable experience who can get you immediately involved and interested. I truly enjoyed his lively and energetic way of sharing his expertise.”

-Danuta Danilova, IFC

“I thought the class was great, simply put. The instructor was very engaging, yet entertaining at the same time making a somewhat dry topic much more interesting and he was able to make the class continually think. I particularly enjoyed being able to look at a project finance transaction from both the debt and equity perspective.”

– Mike Awad

“(The instructor) was very engaging and did an excellent job in catering to the entire audience, combining the commercial deal discussion with going into hands-on excel modeling in a very intense, focused way. We were very pleased with the result…”

– Wolfgang Arbaczewski, VP, HSH Nordbank

“One of the best teachers I have ever had.”

– Jesus Gonzalez Lugo, Organizacion de Auditoria Social y Ciudadana

“I have a good basic knowledge of Excel, but the course gave me better insight into keyboard hot keys and ways to improve my modeling skills.”

– Rupesh Shah, RBS-Sempra Commodities

“Excellent course – glad to have done the first two days of basic modeling before the PPP advanced course.”

– Deena Padamadan, Export Development Canada

“Very impressed by the depth and thorough knowledge of the subject by the instructor.”

– Anton Tontchev, PPP Canada

Chip is probably one of the best modellers out there along with a few others, but no one else, I am sure, has the Project Finance expertise allied to it as he does. I am very grateful for getting a glimpse at this wealth of knowledge.

– David Coulibaly, Canadian Pacific

“Your program was amazing. I truly think that everyone should have a refresher on modeling once a year… Anyone that has not taken your training class is at a huge disadvantage.”

– Irina Benimovich

“Excellent presentation and content. I liked the way the model was built up and the commercial discussions.”

– Akash Prakash, Eskom

“Great course – thank you.”

– Erick Oechler Solana, Hermes Infraestructura

“The course was fantastic. Instructors were great…it definitely broadened my horizons and showed new possibilities.”

– Mutiat Bello, PPP Canada

“Very entertaining with valuable insights.”

– Jean-Philippe Nolet, Export Development Canada

“Very practical and useful course!”

– Enrique Regalado, Director, AMEXCAP

“Instructor was very knowledgeable and obviously has a lot of experience in the subject area.”

– Philswa Nongalo, Eskom

Vair Training Courses: Terms & Conditions

Early-Bird Special: 10% discount for registrations and payments received at least 8 weeks prior to event. The discount code is automated and expires at 12:01AM EST on the date shown on each course.

Combo-Course Discount: 10% discount when same delegate registers for back-to-back courses delivered on consecutive dates

Group-Rates: Group discounts available. Please inquire at +1 770 853 0362 or info@vaircompanies.com

Course Information

Fee: Registration fees include continental breakfasts, morning/afternoon refreshments and networking lunches. Delegate lodging is not included.

Billing and Confirmation: Invoices and/or payment confirmations are forwarded within three (3) business days of receipt of registrations.

Venue: Courses are held at world-class international venues. Locations, times and meeting places are confirmed two (2) weeks prior to course commencement.

Materials: Course materials are provided electronically on Day 1 of on-site registration. Delegates are required to bring a laptop computer equipped with Microsoft Excel 2010 software to training

Hours: Courses run 9:00 am–5:30 pm daily. Each day consists of 7 training hours. A 2-day course = 14 total instructional hours.

Certificates: An official Vair Training course Certificate of Completion will be issued to each delegate, upon request.

Cancellation Policy: All cancellations must be received in writing. A full refund less a 15% administrative fee will be given for cancellations up to thirty (30) days before the event start-date. Cancellations received less than thirty (30) days before the event will not be eligible for a refund. A comparable future course may be attended in lieu of a refund depending upon availability and location. Delegate replacements are also welcome.

Schedule Changes: Vair Training may find it necessary to reschedule or cancel sessions and will give registrants appropriate advance notice of such changes. On such occasions, full refunds will be given. Vair Training will not be responsible for penalties incurred as a result of discounted airfare purchases. For more information regarding Vair Training administrative policies, please contact our offices at +1 770 853 0362.

Please Note: You may register online at http://vairtraining.com – or if you prefer, you may print this page and fax it to +1 678 802 3222

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