Dates: June 18-29, 2018
Location: Washington, DC
A value for money (VfM) analysis consists of a systematic comparison of total costs of financing and delivering an infrastructure project by traditional government means versus private sector means. For a government, there is no single more important exercise than carrying out this transparent cost comparator. Governments must understand the projected costs and revenue streams early in the development of a potential public private partnership (PPP) project so that they can make an informed, long-term decision as to whether the project is viable and what the appropriate financing mechanism would be.
The Institute for Public-Private Partnerships, A Tetra Tech Company (IP3), provides practical, process-oriented sessions on how to conduct VfM analyses, perform case studies, and structure a PPP transactions.
- By successfully completing this course, participants will be able to:
- Analyze why VfM and public sector cost comparison analyses are so critical for PPP project development
- Analyze the overall strategic planning requirements for identifying and screening PPP project opportunities
- Construct public sector cost (PSC) and VfM models and calculate and analyze cost input variables for PPP projects
- Forecast financing costs and discount rates for both traditional (government) and private sector and capital market financing
- Demonstrate how to analyze, value, and manage retained public sector risks and contingent liabilities in long-term PPP projects
- Calculate the differences between financial and economic analysis for projects, including valuation, NPV, IRR, and discount rates
- Justify and estimate the need of public resources, whether direct or indirect, in a PPP project
- Design a detailed, strategic VfM action plan to apply learning outcomes on the job