Understand the principles which create a bankable power project finance structure in terms of risk allocation and the commercial and financial structure.
Project finance is widely used for large infrastructure projects including thermal and renewable power projects. The technique enables project risks to be allocated to the parties best able to manage them and facilitates the raising of long term debt without recourse to the project developer.
The correct allocation of risk through an appropriate commercial structure is the foundation of a sound financing plan and this course will develop these themes by walking through the commercial contracts and finance documentation and provide an understanding of how to determine the optimal amount of debt using cash flow and ratio analysis. Current circumstances in the African power project sector will be discussed.
Investment committees need to be sure that all risk aspects have been studied and the course will detail the key elements of the due diligence exercise. The course will also provide a guide on how to approach the debt market.