Course description
Financing Agreements in Project Finance
Following the financial crisis, project finance transactions are on the rise. While the crisis saw an increased role for International Financial Institutions in developing countries, commercial banks are slowly returning to project finance in the developing and developed world. Basic project finance techniques applied to well structured deals are still the rule. Sponsor support is often a deal breaker. Many PPPs are combining Viability Gap Financing along with commercial lending and concessional loans.
Upcoming start dates
Outcome / Qualification etc.
- Understanding the role of project documents
- Reviewing the concession contract, power purchase agreement, turnkey construction contract, and operation and maintenance agreements
- Understanding risk allocation
- Analysing key provisions of project loan agreements
- Examining the security documents
- Considering both direct and sponsor support agreements
- Learning effective documentation techniques
- Explore the main covenant issues
Training Course Content
Day 1
The Role of the Project Documents
- Overview of what constitutes 'project documents’ and their role in a project
- Lender’s perspectives as compared to sponsors and offtakers
The Power Purchase Agreement/Concession Agreement
Presentation of key issues of bankability in a power purchase agreement/Concession Agreement, including:
- Different structures available: take or pay, minimum take, merchant
- Entry into operation
- Site/existing assets
- Payment structures
- Payment security
- Step-in rights
- Termination
- Dispute resolution
Turnkey Construction Contract
Presentation of turnkey construction contracts and key issues of bankability, including:
- Single point responsibility
- Fixed price
- Date certain
- Liquidated damages for delay and performance
- Warranties
- Termination
- Dispute resolution
Operation and Maintenance Agreements
Presentation of key issues of bankability in O&M agreements
- Different structures available
- Guarantees
- Duration
- Dispute resolution
Workshop: Risk Allocation
participants will be split into groups and will examine a case study using risk allocation techniques.
Day 2
Introduction to Financing Agreements
- What are financing agreements?
- Main particularities and typical provisions of each of the basic financing agreements will be analysed:
- - Loan agreement
- - Intercreditor agreement
- - Security documents
- - Sponsor support
Dealing with International Financial Institutions
- Lenders of last resort/preferred creditors
- A loan & B loan
Examining the Security Documents
- Representations and warranties
- Affirmative and negative covenants
- Events of default
Explaining the Support Agreements
- The significance of support agreements
- The sponsor’s role
- Forms of support from sponsors
- Key provisions
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Expenses
The Course fee: 2245 + VAT
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The training was good and the trainer provided a very good picture of the subject. It would be useful if the material provided was comprehensive so that they could serve for fut...