Public Private Partnership Financial Modelling

1. Training Introduction

Financial modelling is a critical tool for structuring, evaluating, and managing Public–Private Partnership (PPP) projects. Accurate financial models enable stakeholders to assess project feasibility, allocate risks appropriately, and make informed investment decisions.

The PPP Financial Modelling Training equips participants with practical skills to design robust financial models, conduct sensitivity and scenario analyses, and evaluate the economic and financial viability of infrastructure and public service projects. It integrates real-world case studies, applied exercises, and best practices to ensure participants can implement effective modelling techniques in PPP transactions.

 

2. Training Objective

The programme aims to:

• Provide participants with practical skills in PPP financial modelling.
• Enable the design, evaluation, and optimization of financial structures for PPP projects.
• Strengthen understanding of risk allocation, cash flow analysis, and value-for-money assessment.
• Equip participants to conduct scenario and sensitivity analyses for project decision-making.
• Enhance the ability to assess financing options, debt structures, and equity contributions.
• Promote the use of models for monitoring and reporting project performance.

 

3. Targeted Group

This course is designed for:

• Project finance and investment officers in PPP units
• Government officials and policymakers involved in infrastructure projects
• Project managers and technical specialists in transport, energy, water, and urban sectors
• Financial analysts, accountants, and consultants working on PPP transactions
• Private sector operators, concessionaires, and advisors
• Development partners and donor agency staff involved in project evaluation
• Postgraduate students and researchers in finance, infrastructure, or public policy

 

4. Course Duration

5 to 8 Days, depending on delivery format:

• Intensive Workshop Format: 5 days
• Comprehensive Professional Programme: 8 days
• Blended or Online Modular Format: Flexible pacing with guided exercises

 

5. Training Methodology

The training employs a hands-on, practical, and interactive approach:

• Expert-led lectures and thematic presentations
• Applied exercises using MS Excel® for financial modelling
• Case studies of real-world PPP projects
• Scenario and sensitivity analysis simulations
• Group exercises and problem-solving workshops
• Continuous assessment through quizzes, exercises, and project assignments

 

6. Course Content

Module 1: Introduction to PPP Financial Modelling

• Role of financial modelling in PPP projects
• Overview of PPP project lifecycle and cash flows
• Key assumptions and model structure
• Introduction to financial statements and metrics

Module 2: Project Cash Flow Modelling

• Revenue and expenditure streams
• Capital expenditure (CAPEX) and operational expenditure (OPEX) modelling
• Forecasting cash flows over the project lifecycle
• Discounted cash flow (DCF) principles

Module 3: Financing Structures

• Debt and equity financing options
• Cost of capital, weighted average cost of capital (WACC)
• Financing scenarios and project financing mechanisms
• Public sector contribution and guarantees

Module 4: Risk Analysis and Allocation

• Identification of financial, operational, and market risks
• Risk-adjusted cash flow modelling
• Scenario analysis and sensitivity testing
• Mitigation strategies and contingency planning

Module 5: Project Evaluation and Value-for-Money Analysis

• Net Present Value (NPV), Internal Rate of Return (IRR), and payback period
• Comparing PPP with public sector alternatives
• Value-for-money assessment and affordability
• Decision-making based on financial analysis

Module 6: Modelling Contracts and Payment Mechanisms

• Modelling of concession agreements, availability payments, and revenue-sharing arrangements
• Performance-based payments and penalties
• Escalation, inflation, and indexation considerations
• Contractual risk reflection in financial models

Module 7: Sensitivity, Scenario, and Stress Testing

• Testing model robustness under various assumptions
• Scenario analysis: best case, base case, worst case
• Stress testing for financial sustainability
• Interpretation and presentation of results for stakeholders

Module 8: Case Studies and Capstone Project

• Review of real PPP financial models
• Applied exercises in project structuring and financial analysis
• Capstone exercise: building a complete PPP financial model
• Presentation and discussion of findings and recommendations

 

7. Expected Learning Outcomes

Participants completing the programme will be able to:

• Develop detailed PPP financial models in MS Excel®
• Conduct cash flow forecasting and financial feasibility analysis
• Apply debt and equity structuring principles for PPP projects
• Incorporate risk, sensitivity, and scenario analyses into models
• Evaluate PPP projects using NPV, IRR, and value-for-money assessments
• Model contractual arrangements, payment mechanisms, and performance incentives
• Interpret financial results and communicate findings to stakeholders
• Support decision-making in PPP project structuring, financing, and implementation

 

8. Certificate of Completion

Participants who successfully complete all modules, exercises, and the capstone project will receive:

Certificate of Completion

Public–Private Partnership (PPP) Financial Modelling

Issued by FOTADE Training, Research and Resource Development Centre

This certificate confirms that the participant has acquired practical skills to design, evaluate, and manage financial models for PPP projects according to international best practices.