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Workshop on Project Financing (Residential Workshop)

The Project Finance program offers participants a comprehensive understanding of the project lifecycle, focusing on structuring Special Purpose Vehicles (SPVs) and differentiating project finance from corporate finance. Through a mix of case studies, financial modeling exercises, and group activities, participants learn to analyze key project contracts, allocate risks effectively, interpret cash flow waterfalls, and assess projects from a lender’s perspective. The program covers funding structures, term sheet design, due diligence, post-sanction monitoring, and exit strategies, with practical insights drawn from Nepal’s infrastructure, energy, and emerging sectors. Global best practices from institutions like IFC, World Bank, and ADB are integrated throughout, equipping participants to design bankable, real-world projects with robust risk management and financial structuring.

Objectives of the program:

  • Understand the complete project lifecycle and the criticality of a well-structured SPV.
  • Differentiate project finance from corporate finance and identify suitable project types.
  • Analyze the key project contracts and how they allocate risks among different parties.
  • Interpret a project financial model, focusing on debt sizing, cash flow waterfalls, and critical ratios.
  • Evaluate project from a lender's perspective, including robust due diligence and sensitivity analysis.
  • Structure a term sheet and understand the key components of finance documentation.
  • Apply concepts to real-world scenarios in Nepal's key sectors.
Topics
Days
Workshop on Project Financing (Residential Workshop)
3 Days
Total
3

What will you learn with this program:

Introduction to Project Finance

  • Definition & key differences from corporate finance
  • Why project finance suits infrastructure (power, roads, etc), hospitals, hotels, telecom, real estate
  • Typical structure: SPV, limited recourse, ring-fenced cash flows
  • Case study on Hydro project

 

Session 1: Stakeholders & Project Lifecycle

  • Project development stages
  • Key players - sponsors, lenders, EPC, O&M, regulators

 

Session 2: Project risks & their allocation

  • Construction, completion, operation, off-take, political, environmental & forex risks
  • Risk allocation matrix & mitigation mechanisms
  • Typical lender risk checklist for project financing (focus on Hydro and solar power)

 

Session 3: Global best practices in risk structuring

  • “Bankability” criteria from IFC/ADB/World Bank
  • Lessons from successful PF frameworks: India, Vietnam, Philippines
  • DSRA mechanisms

 

Session 4: Activity

  • Participants design a basic risk matrix for a 20 MW hydro project
  • Trainer feedback on completeness and lender view

 

Session 5: RECAP

 

Session 6: Financial projections & key ratios

  • Walk through of financial model
  • Cash flow waterfall
  • IRR vs DSCR vs LLCR
  • Common pitfalls in modelling (seasonality, escalation, delay)
  • Case study on Hydro and Solar projects

 

Session 7: Funding Structure & Term Sheet Design

  • Debt norms in PF
  • Tenor, moratorium, repayment structures
  • Role of consortium lending & lead bank
  • Term sheet clauses: covenants, security, DSRA

 

Session 8: Appraisal and Due Diligence

  • Technical, financial & legal due diligence
  • Interpreting DPR & IE reports
  • Credit appraisal memo: structure & red flags

 

Group activity

  • Build a simplified solar power project model (capex, opex, tariff, DSCR, IRR)
  • Sensitivity analysis - impact of cost/time/interest changes

 

Session 9: Global best practices in financial structuring

  • “Bankability checklist” used by IFC/World Bank/ADB

 

 Session 10: Post-sanction monitoring & disbursement

  • Construction monitoring
  • Cost overrun management (standby equity, contingency)
  • Role of LIE (Lender’s Engineer)
  • Early warning indicators

 

Session 11: Restructuring & exit options

  • Identifying stress signs early
  • Refinancing, tenor extension, equity infusion
  • NRB restructuring norms

 

Session 12: Project finance ecosystem

  • Central Bank policy frameworks
  • Typical PF challenges: delay in DPR, land, forex, approvals
  • Emerging areas: solar-hydro hybrids, EV infra, waste-to-energy, Green hydrogen
  • Green financing and climate-linked loans

 

Session 13: Group case study: designing a bankable project

  • Groups design PF structure for a project
  • Identify risk allocation, term sheet, and DSCR

 

Wrap-up, lessons & certificates

  • Global key takeaways: PPP transparency, stakeholder contracts, data-driven monitoring
  • Bankers’ checklist for project financing decisions

 

 

Methodology:

Highly Interactive Classroom Training

Engaging discussions and participatory learning.

Case Studies & Group Exercises

Real-world scenarios and team-based problem-solving.

Self-Reflection & Action Planning

Personal insights and commitment to workplace implementation.

Peer Feedback & Coaching

Learning from collective experiences.

Targeted-groups:

This program is designed for officials engaged in Corporate Credit, Risk and Compliance, Project Finance, as well as Branch Managers and Relationship Managers who are directly involved in credit-related functions. It also caters to professionals aspiring to take on roles within credit units, especially project financing.

Duration:

3 days

Investment: