PROJECT FINANCING (Islamabad)

INTRODUCTION

Project financing is extremely complex type of lending because of risk involved in this long term financing. It may take a much longer period of time to structure, negotiate and document a project financing than a traditional financing, and the legal fees and related costs associated with a project financing can be very high. Because the risks assumed by lenders may be greater in a non-recourse project financing than in a more traditional financing, therefore requires  more careful approach of lending. In the past twenty years there has been a new wave of global interest in project finance as a tool for economic investment. Though project finance has been in use for hundreds of years, primarily in mining and natural resource projects, its other possible applications—especially for financing large industrial projects (new projects without any prior track record or operating history)—have only recently received serious attention.

OBJECTIVES

The purpose of the course is to enable the course delegates to understand what project finance is, its necessary elements, why it is used, how it is used, its advantages and its disadvantages. At the end of the course, participants should be able to identify projects that meet the essential criteria for a project financing and know how to create the structure for a basic project financing. The course will study the necessary elements critical to project financing to include product markets, technology, sponsors, operators, off takers, environment, consultants, taxes and financial sources. We will discuss and apply the fundamental risk allocation principle of assigning risks and tasks to the party most capable of handling them. Various sources of financing will be discussed including commercial banks, equity sources, the bond markets and leasing.

PROGRAM CONTENTS

1. 1.What is “project finance?”
2. How widely is it used?
3. Parties to a Project Financing
4. What are the advantages and disadvantages of Project Finance
5. Common features of Project Financing
6. What are the necessary perquisites to a Project Financing
7. Project Financing Risks and Structuring
8. Project Cycle: Identification, Preparation, Appraisal, implementation, Project evaluation
9. Is project feasible/Viable
10. Traditional method of project appraisal
11. Financial appraisal techniques

• • Simple Pay-back period
  • Discounted Pay-back period
  • Accounting rate of return
  • Discounted techniques:
  • Time value of moneyNet Present Value(NPV)
  • Internal Rate of Return (IRR)
  • Profit Index
  • Sensitivity Analysis

12. Major participants in a Project
13. Risks and Mitigates in Project Financing
14. Project Background
15. Feasible Investigation
16. Assembling the Proposition- COP & MOF
17. Project appraisal by banker
18. 18. Feasibility Report conclusion

WHO SHOULD ATTEND

• Lending executives and officers
• Relationship Manager
• Auditors
• Internal control officials

PROGRAM SCHEDULE

The workshop is two-day program (9:30 pm to 4:30 pm).

LEARNING INVESTMENT

Rs 22,000/- learning investment includes; certificate, hands-on training, participant training kit, refreshment, lunch, and business networking.

ABOUT SPEAKER

Mr. Malik Dilawar is an accomplished, dynamic, and client-driven training professional consultant with 45 years diversified experience of banking.  Offering 31 years of exclusive experience in Training Management, presentation skills, facilitation, and curriculum design. He  started his professional career as lecturer in commerce, subsequently joined one of the largest  Bank of the country where he worked in  different senior capacities, including Branch Management , Corporate Risk management, Trading Risk, Audit & Inspection, HR- Recruiting, Screening, Training and Development. He has organized different seminars and workshops for senior Pakistani bankers worldwide including USA, Great Britain, Ireland, Turkey and Philippine. Conducting training programs for various banks and financial institutions locally and overseas. Also served National Institute of Banking and Finance, Islamabad as Director, Academics and Finance.

He retired as Principal/Senior Training Manager, North, United Bank Limited Staff College, Islamabad. He holds  Master Degree in Commerce from Hailey College of Commerce, University of Punjab, Pakistan and  is also Associate Member of Institute of Bankers in Pakistan.