Project Finance & Infrastructure Modeling

Build a project finance model from scratch using an infrastructure project case study.

This course teaches participants how to develop a best-practice financial model and optimize it for both debt and equity investors for an infrastructure project finance deal.  Using a case study of a PPP hospital project, participants learn the concepts required to develop a financial model related to Public Private Partnerships (PPPs / P3s) for both social and economic infrastructure.

A toll road model is also provided with a description of the revenue and cost drivers.

By the end of this course, participants will be able to:

  • Understand and apply principles of best practice to an infrastructure project finance model
  • Demonstrate knowledge of project finance concepts and operations
  • Optimizing a model to satisfy investors – do a deal!
  • Professionally present model outputs and 3-way statements

Who should attend:

This course will benefit the following people:

  • Analysts, associates & vice presidents at banks, funds, investors, developers, and operating entities looking to standardize approaches to modeling or solve new problems
  • More senior participants changing careers or looking to up their skill set
  • Students wishing to enter the project finance sector or about to start new roles

Still unsure if this course is right for you?

Our course information and QA sessions are a great way to learn about our training programs.  You will get an overview of the course content, delivery structure and key objectives. If you would like to download and watch the video recording of our October live session with Haydn simply click here

Course delivery options:
This course can be completed numerous ways, including:

  • Self-paced, online – complete this course online at your own pace.
  • Live streaming – join with other professionals in a small group environment to complete this course.
  • Inhouse – this course can be customized to address the unique challenges that your team or organization face.

Why trust Pivotal180 with your professional development?

There are many reasons why we stand out from other firms, but the following is what makes us particularly unique:

  • Pivotal180 is focused exclusively on teaching. Institutional and human capacity building is not a side business. It is core
  • Daniel Gross and Haydn Palliser (both Ivy League Professors) personally lead all Pivotal180 training courses
  • We have led deals. Our understanding is from practical transactional experience, not from reading about it or hearing about it from senior people on our team
  • We have trained the top advisors, developers, lenders, and funds across the world.
  • We tailor our courses more than anyone else in the market, to meet your needs
  • Our blended solution includes 12 months of access to our online courses, such that your team can review concepts AND dive deeper into topics we do not have time to cover in class.

The course covers a broad enough set of topics such that it is also suitable for those in other project finance sectors such as power or mining.

Our courses are not limited to financial modeling and best practices in Microsoft Excel.  We are committed to explaining how the numbers align with underlying financial and engineering concepts, transaction structures, legal documentation, market conditions and risk management approaches. We don’t just teach how to build models. We teach how to do

Promotional offer:

  • For anyone enrolled in our Renewable Energy Project Finance Modeling Course, the fee for the Project Finance & Infrastructure Modeling Course is $300*.

*Please contact alison@pivotal180.com to obtain a coupon code to apply on registration.

Course Outcomes

Best practice project finance modeling

Project finance concepts and operations

Optimizing a model to satisfy investors – do a deal!

Professional presentation of outputs and 3-way statements

Register your interest in our online courses



Course Previews

What is Project Finance

Project Finance Infrastructure Model Familiarization

DSCR Sculpting

OUR BLENDED LEARNING COMBINING IN-CLASS AND ONLINE MATERIAL ENSURES WE TEACH MORE AND YOU LEARN MORE. 5 DAYS OF MATERIAL IS CONDENSED INTO 3 DAYS + ONLINE CONTENT.

Course Portfolio Region Course Delivery Start Date Price Register/Enquire
Project Finance & Infrastructure Modeling All Online Self Paced Available Now USD 800 Register
Project Finance & Infrastructure Modeling All Live Streaming 19 Jan 2021 Contact Us Reserve a place
Project Finance & Infrastructure Modeling All Live Streaming 16 Mar 2021 Contact Us Reserve a place
Project Finance & Infrastructure Modeling New York Public Session Early 2021 Contact Us Reserve a place
Project Finance & Infrastructure Modeling UK/Europe Public Session Early 2021 Contact Us Reserve a place
Project Finance & Infrastructure Modeling Africa & ME Public Session Early 2021 Contact Us Reserve a place
Project Finance & Infrastructure Modeling All Inhouse Tailored On Request Contact Us Request proposal

Contact us for on-site or on-campus pricing and options.

The cost of the online course will be credited to you if you join a public or live streaming session within 12 months of purchase.

Discounts provided off the full course prices.

  • Students and non-profits are eligible for a discount of 50% (no other discounts may be added to this).  Online course price for students and non profits is $400
  • Other discounts
    • Group booking of 3 or more people – 15%  Price per person for online group bookings is $680
    • Early bird ( interactive online and public sessions only ) if book 8 weeks before the course – 10%.

Promotional offer:

*Please contact alison@pivotal180.com to obtain a coupon code to apply on registration.

 

  • 12 months access to our online material, including concept videos with transcriptions, lecture slides, downloadable spreadsheet examples.
  • A complete step-by-step model walk-through, and access to discussion forums for ongoing questions’.
  • Subscription can be extended annually post the first 12 months for $100 per annum.
  • Lunch, tea & coffee at the venue (public session participants only).
  • Membership to the Pivotal180 alumni network.
  • Course completion certificate.

Due to the large volume of content available, the course is suitable for all-levels – there is something for everyone.

  • Analysts, associates & vice presidents at banks, funds, investors, developers, and operating entities looking to standardize approaches to modeling or solve new problems
  • More senior participants changing careers or looking to up their skill-set
  • Students wishing to enter the project finance sector or about to start new roles – get ahead of your competition now
Section Overview
Pre-course material
  • Course requirements and overview
  • Excel functions required
  • Shortcuts, named ranges, and data validation
  • Best practice principles
  • Best practice – flags and accounts
  • Impact of leverage on a project finance deal
Project finance introduction
  • Introduction to project finance
  • Typical investment structures
  • Tax and legal implications
  • Overall timeline and cashflow relationships
  • Major contracts and risk vs reward
  • Roles of different parties in the deal
Project finance term loans
  • Impact of leverage on a deal
  • Types of lenders and their mindset
  • Appropriate discount rates and interest repayments
  • Principal repayment options
  • Debt service cover ratio (DSCR)
  • Sculpting and sizing debt
  • Cash sweeps
  • Loan life cover ratio (LLCR)
  • Other debt ratios used for going-concerns
  • Understanding a Facility Agreement
Cashflow Drivers
  • Availability payments
  • Lifecycle costs
  • Revenue forecasting for patronage risk projects
  • Typical costs for infrastructure projects
  • Inflation calculations
  • Discussion of risk profiles of infrastructure assets, including:
    • Airports
    • Ports
    • Rail
    • Roads
    • Social infrastructure
  • Major maintenance reserve accounts
  • Understanding:
    • Project Agreements
    • Concession Agreements
    • O&M Agreements
Waterfall and cashflow summary
  • Typical waterfall structure vs cashflow statement
  • Accounting vs cash issues
  • Global differences in calculating the waterfall
  • Accounts required and the role of the administrative agent
  • Develop separate cashflow forecasts for debt and equity analysis
  • Develop upside and downside scenarios and sensitivities with data tables
Debt service reserve account (DSRA)
  • Requirement of (and implementation of) a DSRA
  • Impact of the DSRA on debt ratios
  • The debt service facility as an alternative
  • Develop model checks to ensure compliance with loan documents
Construction phase
  • EPC contract overview
  • Completion testing required and holdback payments
  • Value added tax challenges and solutions
  • Sources and uses
  • Model construction costs and understand funding challenge
  • Calculate total funding required
  • Discuss alternative drawdown orders
Depreciation and tax
  • Straight line, reducing balance, and MACRS depreciation
  • Model from EBITDA to EBT
  • Thin capitalization constraints on tax deductibility
  • Tax losses carried forward
  • State and local taxes
  • What happens when tax is ahead of CADS
  • International tax considerations (i.e. WHT, tax treaties)
  • Complete post tax valuations
Returns
  • Returns required for lenders, equity, and developers
  • Cap rate compression and the value in selling your project, calculating terminal values
  • Holdco debt and adding subordinated debt to increase returns (and risk)
  • Valuation comparables
Core Outputs
  • Comparison of accounting and tax depreciation
  • Developing an income statement and balance sheet
  • Converting quarterly calculations to annual outputs
  • Calculating working capital
  • Add deferred taxes to your model
  • Outputs required for an investment decision
Modeling quality checks
  • Adding model checks
  • How to review a model

 

Optimizing a deal model
  • Solve the price required to achieve a hurdle rate
  • Size the debt required in operations and construction
  • Introduction to VBA for project finance
  • Running scenarios with VBA
  • Simplifying alternatives to avoid VBA
  • Summary of core risks with analysis

Pre-requisites

Basic knowledge of Excel only

Equipment Required

Area Items Needed
Online Course

Computer, 2 screens preferable, Microsoft Excel

Public Session

Laptop & Power cord

Public courses run from 9am – 5.30pm at a location to be confirmed  post registration

interactive online sessions commence at 11am New York time

Range Amount
>4 weeks before the course Full Refund
1-4 weeks before the course 50% Refund
<1 week before the course No Refund

Get in touch to discuss our training or advisory services