Project Financial Management for Project and Non-Project Staff

The entire Project Management process would be a frustrating endeavour without adequate financial management. Thus, it is safe to say that Project Financial Management is as important as Project Management itself. Sourcing or acquiring finance for the project is on one hand, managing the project finance is on the other hand.

It will be a total waste of effort and time if the Project finance is not used appropriately and ultimately the goal of the project will not be met. The correct allocation of risk through an appropriate structure is the foundation of a sound financing plan and this course will develop these themes by walking through the relevant contracts and finance documentation and provide an understanding of how to determine the optimal amount of debt using cash flow and ratio analysis. Global trends in project financing circumstances from around the world will be discussed though case study exercises.

Investors or the company’s management need to be sure that all risk aspects have been studied for the project to be a true success and the course will detail the key elements of the due diligence exercise. The course will also provide a guide on how to approach investors.

This course takes participants through the techniques and tools used in Project Financing and Project Financial Management.

Benefits of Attending

• How projects are structured and financed
• How to identify project risks and mitigation strategies
• The role of the financial model and cash flow and ratio analysis
• Debt sizing techniques
• Project finance term sheets and loan documentation
• Contract documentation
• The due diligence processes
• How to efficiently identify viable project prospects
• How to manage projects successfully to guarantee returns

Course Outline

Module 1:

• Projects and Project Management
• Key elements in Project Management
• Project Structure and Risk Allocation
• Project commercial structure
• Attributes of a bankable project
• Project risk identification and evaluation
• Case study: Preparation of a risk matrix

Module 2:

• The Finance Plan and Financial Model
• Risk mitigation
• Case study: Examples of risk mitigation
• Financial plan for the project
• Introduction to the financial model

Module 3:

• Debt structuring and debt sizing
• Case study: Debt sizing and repayment profiling
• Project opportunity determinants
• Project Contracts and Financial Documentation
• Principal commercial project contract – key features
• PPP contract structures
• Finance documentation
• Case study: Debt term sheet – bid preparation

Module 4:

• Running the due diligence process
• Case study: Lessons learned – issues raised that have not succeeded
• Restructuring and refinancing
• Debt raising – how to take your project to market
• Case study: Presenting to the investment committee – bringing together the learning from the course