ORGANIZED BY:
PUBLIC INVESTMENT FUND
THE WORLD BANK INSTITUTE
THE WORLD BANK

Introduction

Despite the large numbers of projects under development and others in the pipeline, the Kingdom of Saudi Arabia is continuously challenged to cope with an increasing demand for infrastructure services. The government has put together an ambitious plan for the upgrade and expansion of economic and social infrastructure with a special focus on transportation, energy and water sectors. Within this context the private sector is expected to provide the necessary investment through privatization and PPP schemes. Prospects for more active participation of the private sector in urban “mega projects” are greater than ever, especially after the announcement of the six new “economic cities” in Rabigh, Jizan, Madinah, Hail, Tabuk, and Eastern province. The economic development of those cities is anticipated to stimulate regional growth, create jobs and diversify the economy.

Saudi Arabia is one of the top ten reformers in the world, thus supporting an ambitious policy to attract local and foreign capital investments. As a result, in the last five years, big investment banks from the Gulf region but also from Europe have stepped in as lenders in major infrastructure projects. Key prerequisite for inflows of international financing is the market’s willingness to provide debt which complies with the Islamic law. Infrastructure project finance, especially in the form of PPPs, could be even considered as a perfect match for the use of Islamic debt.

This course is designed to respond to a request from the government in order to enhance project finance skills of government officials dealing with PPP and privatization programs. Organized by the Middle East and North Africa Sustainable Development Department (MNSSD) and the World Bank Institute (WBI) and in collaboration with the  Public Investment Fund (PIF) of the Ministry of Finance, this course will primarily expose public sector middle and senior level staff to cutting edge techniques and tools necessary to design and structure Public-Private Partnership (PPP) projects in various infrastructure sectors.

Objective

The primary objective of this course is to enhance the capacity of mid and high level government officials in the basics of infrastructure finance. This is expected to be achieved through:
(i) the enrichment of participants’ skills in various aspects of infrastructure finance such as sources of project finance, financial modeling, project appraisal, contract design and award, and economic regulation; and (ii) the learning of the diverse design and implementation approaches via case presentations in the energy , water, and transportation sectors.

Target Audience

The direct client of this project is the broader public sector policy makers of Saudi Arabia. More broadly, the audience includes a wide range of public officers working on policy, regulatory, legal, and financial and procurement aspects of infrastructure PPP projects

Course Orientation

This course is designed to provide an overview of current infrastructure-project finance practices with particular emphasis on global capital markets, project design and appraisal, and risk management. The ultimate goal is to enable participants to apply ideas and concepts developed in class on a day-to-day basis to a variety of professional challenges. After the completion of the course participants should be able to evaluate the advantages and disadvantages of both debt and capital market financing options for infrastructure projects, design capital structures appealing to international investors and carry out economic and financial analyses of investment projects. As an integral part of this knowledge, participants will have gained an understanding of the importance of project finance (both sponsor and investor perspectives), the negotiation of deals, sources of funds, first bond (debut bond) and equity (IPO) offering by project vehicles, global markets practices and conventions, the legal documentation involved, and local and regional challenges.

Each day of the course corresponds to eight different themes which will be entirely covered through presentations, discussions and case studies. Download the course agenda for a detailed description here.  Agenda (146KB)

Course Materials

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