-Agenda
Day 1
| 12:00 PM - 12:15 PM |
Welcome & Overview
Welcome to the Intro Public-Private Partnership (P3) Finance WebCourse. During this time, we will introduce CDFA, explain how to use the online course software, and discuss the framework for the two-day course.
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| 12:15 PM - 1:15 PM |
Understanding Public-Private Partnerships
When it comes to development finance projects, there are several ways to think about partnerships between the public and private sectors. The Intro P3 Finance WebCourse, however, will focus specifically on P3 financing models where a contractual agreement between a public agency and a private partner is created to support the construction and development of ongoing operations and maintenance of a public asset. The opening session will provide basic definitions, explain fundamental concepts and the partners involved, categorize the types of P3s, and outline the various P3 models featured in this course.
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| 1:15 PM - 1:45 PM |
P3 in the United States: Key Characteristics and Drivers
Interest in P3 financing is growing especially with the increased federal investment in infrastructure. To date, 35 states, including the District of Columbia and Puerto Rico, have legislation allowing for P3 projects with over 320 P3 projects currently in the planning and execution stages. What is the market for P3 projects, and what does the legislative and regulatory environment look like? Hear from industry experts as they discuss the key characteristics and drivers of P3 financings throughout the country.
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| 1:45 PM - 2:00 PM |
Break
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| 2:00 PM - 3:15 PM |
Identifying P3 Projects and Knowing the Atmosphere
P3 projects come in all shapes and sizes, and no two projects are alike. State and local governments have undertaken a wide range of P3 projects, from toll roads, bridges, and parking systems, to schools, roads, and public facilities. Identifying potential P3 projects and private sector partners in your community is the first step. Then, undertaking the proper market, feasibility, and financial analyses to know the atmosphere surrounding the deal is essential. Learn how to engage the right firms and complete the necessary studies during this session.
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| 3:15 PM - 3:30 PM |
Break
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| 3:30 PM - 5:00 PM |
The P3 Capital Stack: Balancing Debt & Equity
When undertaking a P3, it is important to understand that the public agency is not directly selling an asset to a private sector partner. Instead, the arrangement allows for the public agency to own the asset and contract with a private sector partner for operations, maintenance, and ongoing delivery of services. How, then, is the financing structured? Generally, P3 projects combine both debt and equity sources and are structured using either asset monetization or availability payments. These models will be explained in detail during this session along with pros and cons of each and examples of various ways to assemble the transaction. In addition, this session will also address asset valuation and revenue stream development and how these concepts factor in to the overall deal structure.
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| 5:00 PM |
Adjourn
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Day 2
| 12:00 PM - 12:15 PM |
Revisiting Day 1
The first day of the Intro P3 Finance WebCourse looked at the overall P3 concept, the market for P3 projects, how to identify partners, and various ways to structure the deal. At the start of Day 2, we will review some important concepts and set the stage for the remaining sessions.
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| 12:15 PM - 1:45 PM |
Negotiating the Terms & Managing Risk
When structured properly, a P3 project should build on the strength and investment power of the public sector while benefiting from the innovation and efficiency of the private sector. Negotiating the terms of the partnership is key to realizing these benefits, while careful management of the risks in a P3 project is also critical to a successful transaction and a productive partnership. What are the terms in the contract, how should they be negotiated, how do you balance the demands of the private sector with the needs of the public sector? During this session, we will look at best practices and typical terms of a P3 agreement as well as define the risks and consider how to allocate them between the partners involved.
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| 1:45 PM - 2:00 PM |
Break
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| 2:00 PM - 3:30 PM |
P3 Case Studies
Now that we have considered the various aspects of a P3 financing, let’s look at the variety of projects that have used the P3 model. For each case study, we will review who the partners were, how they assembled the transaction, what the capital stack looks like, and how the project is fairing long-term. We will learn about several deals, compare and contrast them, discuss what worked well, and consider the lessons that can be learned for future projects.
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| 3:30 PM - 3:45 PM |
Break
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| 3:45 PM - 5:00 PM |
Unique Models and Other Ways to Think About P3
The goal of the Intro P3 Finance WebCourse is to introduce basic P3 concepts and explain the typical structure and components of the financing. As you consider how to adopt a P3 philosophy locally, what are some of the other models to consider? During the final session of the course, we will present some different concepts, including public-public partnerships, and creative uses of this tool. We will also use this time to answer any remaining questions during an interactive discussion with the panelists.
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| 5:00 PM |
Adjourn
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