32nd Annual Conference, Making Major Projects Bankable

Over recent years a comprehensive understanding of project finance and funding has become vital for Major Project Sponsors, Clients and Programme Directors. In the article “Investing in Infrastructure, the Trillion Dollar Gap” in the March 2014 Economist, it was suggested that enhancing the ‘professionalism’ of project initiation and delivery was key to addressing the gap in investment; “every country needs a competent group of (sponsors / programme directors) who have the authority and skills to design a pipeline of viable infrastructure deals and the political clout to standardise procurement procedures and other practicalities of getting a road built or a tunnel dug”.

Understanding the various means by which private finance may be obtained is equally relevant to large infrastructure and railway projects. The options for equity and debt financing sources, finance solutions and potential contractual structures have been evolving to meet the growing demand for major project finance at a time when the appetite of traditional financing sources has been curtailed.

In a similar manner to our evening debate in March “What is the true value of major projects”, we want to explore/debate “Making Major Projects Bankable” at this year’s MPA Annual Conference. As an outcome from the conference, we want to understand the scope of ‘project finance understanding’ that major project Sponsors, Clients and Programme Directors will need to develop to ensure that their projects are ‘bankable’ (i.e., their projects will attract and secure appropriately priced finance and funding solutions when required). The conference will share ideas, solutions and experiences of project finance, including: financing structures (e.g., equity, debt, leases and bonds), funding mechanisms (e.g., off-take agreements, tolls, local taxes and utility bills), contractual mechanisms (e.g., PF2 and Regulated Asset Base) and the role of ratings agencies (e.g., Moody’s Investors Service Ltd). Further, we will explore the implications for the supply chain of non-recourse project finance arrangements as the liquidated damages and bonding aspects are much more demanding than those of traditional arrangements to ensure that they are best able to structure their proposals to be attractive to those providing debt/equity.

There is limited availability on this overnight conference – if you would like to attend for the 24hrs or on Wednesday 17th September or Thursday 18th September only please contact the MPA office 01865 338373.