Introduction

Energy projects are capital intensive making finance decisions vital to the future success of the organisation. Government and companies also have many strategic alternatives, all competing for limited funds; whether to commit funds to finding new resources, grow existing markets, develop alternative energy sources, or to diversify. This course will provide delegates with the essential knowledge and skills to enable them to make effective financial decisions regarding energy projects.

This training course will highlight:

  • The various methods of financing energy projects
  • Project Finance and the role of Special Purpose Vehicles
  • The Cost of Finance and Methods to control such costs
  • The evaluation of projects and terms of finance agreements
  • Risk management for Energy Projects

Objectives

By the end of this training course, participants will learn to:

  • Evaluate the various methods of financing projects  to make sound recommendations
  • Manage Project Finance contracts
  • Manage the Costs of Finance and recommend appropriate methods of finance
  • Evaluate energy projects and meet finance regulations
  • Manage project risk effectively

Training Methodology

Participants to this training course will receive a thorough training on the subjects covered by the seminar outline with the Tutor utilising a variety of proven adult learning teaching and facilitation techniques. Seminar methodology includes:

  • The evaluation of real world Case Studies from the Energy Sector
  • Video presentations
  • Lectures and group discussions
  • Exercises
  • Customized delivery methods

Delegates will be encouraged to participate actively in relating the principles and skills of the course to the particular needs of their workplace.

Organisational Impact

As a result of sending employees to attend this course the organisational will gain:

  • Informed staff, engaged with the latest developments
  • Improved risk management
  • Staff with knowledge of the latest tools and techniques
  • Improved performance with staff better able to meet customer needs
  • An improved finance and risk management culture

Personal Impact

As a result of attending this course the individual will gain:

  • Improved knowledge and understanding
  • The ability to apply new skills
  • Up-to-date knowledge
  • Legal, financial and risk management knowledge and skills
  • The ability to improve their roles and career growth

Who Should Attend?

This training course is suitable to a wide range of professionals but will greatly benefit:

  • Finance managers
  • Project managers
  • Those with an interest in financial decision making
  • Line managers whose role involves making financial decisions
  • Those acting within budget constraints

The Course Outline

Day One:  An Overview              

  • Major Energy Projects and Financing Schemes
  • The Energy Sector – Strategic Issues affecting Future Finance
  • Government Finance
  • Traditional Methods of Finance
    • Public Share/Equity
    • Debt: Loans & Bonds
  • Project Finance
  • Private Equity Finance & Venture Capital

Day Two: Project Finance

  • What is Project Finance?
  • The Structure of Project Finance Schemes for Energy Projects
  • Special Purpose Vehicle (SPV)
  • Parties to Project Finance Schemes
  • Recourse & Non-recourse Finance
  • The Role of Bonds/Guarantees and Letters of Credit

Day Three: The Cost of Finance

  • The Cost of Finance
  • Dividend Policy and the Impact on Finance Costs
  • WACC, CAPM & Arbitrage Pricing Theory
  • Dealing with Changes in the Cost of Finance
  • Interest Rate Swaps
  • Credit Ratings and the Impact on Cost

Day Four: Project Evaluation & Finance Agreements

  • Traditional Balance Sheet v Project Finance, Evaluation & Appraisal
  • Financial Evaluation / Ratio Analysis of Energy Projects
  • Loan Agreements & Covenants;
  • Debt Service Coverage Ratios (DSCRs)
  • Evaluating Cashflow Forecasts
  • Risk Based Costing of Finance

Day Five: Financial Risk Analysis

  • Determining & Implementing a Risk Management Strategy
  • Identification, Measurement and Management of Risk
  • Technical, Feasibility & Environmental Risk Analysis
  • Sensitivity Analysis & Simulation Analysis
  • Management of Financial Risks
  • Financial Derivatives to Manage Energy Price Volatility

The Certification

Certificate of Completion will be provided to delegates who attend and complete the course

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