Public Private Partnership PPP

Introduction

Infrastructure Needs in Africa: There's a critical demand for new infrastructure to accommodate growing populations.

Financial Challenges in the Gulf: Unique and growing financial issues are being faced.

Requirements for More Infrastructure: Needs include roads, airports, schools, hospitals, and housing, with an ever-expanding list of requirements.

Governmental Financial Limitations: Severe budget constraints at all governmental levels hinder necessary structural transformations.

Success of PPP in the Middle East: Some countries have developed moderately successful Public-Private Partnerships (PPPs), each with unique national characteristics.

Persistent and Intensifying Challenges: The region faces ongoing and deepening difficulties in the current environment.

Master Class Goals

Purpose: To provide a comprehensive understanding of PPP operations and to empower participants to innovate through practical application.

Method: Utilizing in-depth studies, collaborative discussions, and rigorous evaluations.


Course Objectives

Financial & Commercial Aspects of PPP:

  • Topics include funding strategies, attracting investors, managing project finances, and understanding ROI.

Project Management Aspects of PPP:

  • Encompasses project planning, cost management, risk assessment, and implementation.

Legal Aspects of PPP:

  • Involves contract negotiation, regulatory compliance, and dispute resolution.

Sector-by-Sector Analysis:

  • Detailed examination of PPP models and structures across various sectors.

PPP Model Construction:

  • Hands-on training in building a functional PPP model using Excel.


Course Outline

Day 1: Understanding PPP Fundamentals and Sectoral Insights

  • Debate: What responsibilities should the government provide?
  • Case Studies:
  • Privatization strategies.
  • Experiences of PPP in Africa and the Gulf.
  • The UK’s rejection of PPP.
  • Taxation strategies for private investment.
  • Structure Analysis:
  • Lease-Develop-Operate (LDO) and Wrap-Around Addition (WAA).
  • Group Discussion: Technical skill gaps in the public sector.
  • Sectoral Overview:
  • Toll Roads, Railways, Schools, Hospitals, Housing, etc.


Day 2: Project Evaluation and Financing

  • Project Evaluation: Overview and case study comparisons.
  • PPP Processes: National and international procedures.
  • Project Financing:
  • Roles of financial institutions like the African Development Bank and Islamic Development Bank.
  • Evaluation of financial structures.
  • Contractual Issues:
  • Evaluation of PPP transactions.
  • Appropriate financial structures for infrastructure.


Day 3: Risk Management and Legal Frameworks

  • Risk Management: Overview and specific case studies.
  • Legal Frameworks:
  • Standard PPP contracts and regional specifics.
  • Evaluation of UK Local Government and Indian concession contracts.
  • Future of Infrastructure Finance: Insights into best practices.


Day 4: Advanced PPP Modeling

  • PPP Modelling Techniques: Cash flow analysis and valuation.
  • Project Finance Insights: Revenue and cost modelling.
  • Practical Application: Utilization of models and rating methodologies.


Day 5: Constructing and Analyzing a PPP Model

  • Building a PPP Model:
  • Review and analysis of project inputs.
  • Data verification and cash flow projections.
  • Financial Metrics Analysis:
  • Loan assessment, IRR, NPV, and more.