Infrastructure Finance in Asia

Singapore - 26, 27 and 28 November 2013

Course Director
Course Director: Andrew Kinloch
+20 years experience arranging debt and advising on project finance deals

Who should attend?

Government executives Project finance professionals Commercial, investment and corporate bankers Contractors Consultants Investment Analysts Project Sponsors and PPP developers Engineers Accounting and Legal Practices Export Credit Agencies

Course Overview
The market for Project Finance in Asia is potentially huge -according to the ADB, $8 trillion worth of infrastructure needs to be financed by 2020 and only a fraction of this will come from host governments. The governments recognize this and are looking to foreign Export Credits and the private sector to help plug the gap with Project Finance. But much needs to be done if this potential is to be converted into actual deals signed. This course introduces the superior risk assessment and focus on allocation of responsibilities and rewards which are fundamental to Project Finance. It explores the techniques used by Project Finance to control cash flows in a wide range of outcomes and to incentivize performance by counterparties in transactions which are high profile, high value, long dated, much needed yet politically sensitive. Using recent case studies from across the region, the course spans all infrastructure sectors across Asia where opportunities vary considerably according to size and depth of markets, readiness of host governments, commitment of local sponsors, ambition of exporters and a cast of commercial banks which has changed completely in recent years. It does so by learning lessons both from deals which were successful and those which needed reworking and by drawing on the Course Directors first - hand experience of equity, debt and public sector perspectives both in Australia and the U.K. where many Project Finance concepts were first developed then, for the past fifteen years, in the very different markets of Asia.

InfraPPP World S.L. +34 661 24 97 63 ama@infrapppworld.com www.infrappptraining.com

Infrastructure Finance in Asia

Singapore - 26, 27 and 28 November 2013

Agenda I
Day One
1. INTRODUCTION
Objectives Course Director introduction Delegate introductions: why you should use Infrastructure Finance with your organization Evolution of Infrastructure Finance into todays sectors Deal snapshot: IPM Eagle, global Sources of Infrastructure Finance: sovereign, SOE, equity, capital markets, bank debt, MLAs / ECAs and when to use which BP Amoco merger, global Illustration of effectiveness of Project Finance: UK Private Finance Initiative / Public Private Partnerships experience 1992 2006 versus a change of appetite since then Telecoms o fixed line, mobile and cable Deal snapshot: C2C, regional Leisure o casinos, theme parks and stadia

3. THE IDEAL LIFE CYCLE

Inception Bidding Award Negotiate financing Due diligence Syndication Construction and operation Repayment Philippines BOT Law Marubeni / Tepco purchase of Mirant

Case study:

Deal snapshot: Tangguh, Indonesia Distinguishing features of Infrastructure Finance: concepts of limited recourse lending and risk allocation The Infrastructure Finance market in Asia Privatisation, single asset corporations and project finance Deal snapshot: Privatization of the Singapore power generation market Bond market characteristics Similarities: Project Financing and Islamic Financing Project Finance metrics Sources

Case studies:

4. RISK MITIGATION

Class discussion: Mundra UMPP Completion of construction Revenues With Offtaker o Market price risk o Market volume risk o Market price and volume risk o Fuel supply and reserves risk Operating Technical Interest rates Equity Force majeure Environmental and reputational Foreign exchange Approvals Tax and regulatory Legal Corruption Political

Deal snapshot: Manjung Island Energy, Malaysia

2. TYPICAL STRUCTURES BY SECTOR

Project agreements and financing agreements Power generation Natural resources o market price risk: metals and mining, oil and LNG o with feedstock: refining and petrochemicals

Deal snapshots: Icthys LNG, Australia Nanhai Petchem, China Infrastructure o market volume risk: road, rail, airports, ports and water o availability risk: prisons, schools, defence, hospitals

Class discussion: Sports Hub, Singapore

InfraPPP World S.L. +34 661 24 97 63 ama@infrapppworld.com www.infrappptraining.com

Infrastructure Finance in Asia

Singapore - 26, 27 and 28 November 2013

Agenda II

Day Two
Case studies: North Luzon Expressway, Philippines Asia Container Terminal, Hong Kong

Day Three
Case studies: Hong Kong Tel Co CBK Power, Philippines

5. POLITICAL RISK
Exercise in identification of political risk: Theun Hinboun expansion, Laos The risks Preemption The mitigants The players o Multilaterals o Bilaterals o Private Insurers Alternative dispute resolution Mitigation benefits and policy issues Lihir Gold, PNG Manila airport terminal 3, Philippines

7. FINANCING PLAN
Sources of finance and sufficiency of funding Standby facilities Contingent equity Tax effectiveness and leasing Base Case cash flows and sensitivities typical road financial aspects

Case study:

8. GOVERNMENT AGENDA
Appetite for private sector infrastructure Control of monopoly asset Credit support for State Owned Enterprises Powers of eminent domain Restrictions on foreign nationals Control of investor returns Accounting treatment by Governments Government appetite for Private Sector participation South Korea

Case studies:

6. PROJECT FINANCING CHARACTERISTICS

Finance Agreements Cash flow control waterfall Ratio definitions Flexible payback of debt Flexible returns on debt Equity considerations Project life tail Credit enhancement Lenders involvement in project Dispute resolution Default Ancillary banking products Nature of Sponsors Accounting treatment by Sponsors

Deal snapshot:

9. PROJECT FINANCE OUTCOMES

Commentary Moodys re project finance loans performance 1983 2011 Political climate around Asia Deal snapshots: India Case study: Star refinery, Thailand Reliance Infras Delhi airport metro, Paiton Energy, Indonesia

10. CONCLUSION

Venue
The course will be held in a 4 5 star hotel, chosen for its location, facilities and service. You can be assured of a comfortable, convenient learning environment throughout the duration of the course. Due to the variation in delegate numbers, we will send confirmation of the venue to you approximately 6 weeks before the start of the course.
InfraPPP World S.L. +34 661 24 97 63 ama@infrapppworld.com www.infrappptraining.com

Infrastructure Finance in Asia

Singapore - 26, 27 and 28 November 2013

Trainer
ANDREW KINLOCH - LOGIE GROUP LIMITED

Andrew set up as Logie Group in 2003 to offer specialist advice on infrastructure finance in Asia. His business includes writing and running training programmes in project / energy / infrastructure finance for a number of public and private providers as well as in - house courses for, amongst others, the Asian Development Bank (ADB). Andrews training focusses on contemporary market practice in Asia. He is able to bring the perspective of debt, equity, host government and bilateral / multilateral agencies in these markets drawing on case studies which have both succeeded and failed because his mainstream business is advising on: government policy e.g. the MOF in Indonesia re its support for some $15 billion of capex in the power and transport sectors; also Bappenas / Ministry of Public Works on the $235 million Umbulan Springs water supply project, also in Indonesia; investor strategy e.g. an Australian superannuation fund on how to invest in Asian infrastructure; raising new funds for new projects; acting in distressed situations e.g. as an expert witness in arbitrations involving the $425 million Manila airport terminal 3 and a power plant in Cambodia. He is regularly published in the specialist press and contributed the chapter on Indonesia to Principles of Project Finance, a 500+ page textbook published by Gower Ashgate in 2012. He is a guest lecturer at Hong Kong University and Rotterdam School of Managements international project. This advice is based on 20+ years Lead Arranging and advising on project, export and structured financings in Sydney with Westpac; in London with IBJ/Mizuho and UBS; and in Hong Kong where he ran Global Structured Finance, APAC for WestLB when it was in the top five Lead Arrangers of Project Finance globally and where he was responsible for a 2.5 billion loan book and 30 professionals. He was a board member of the only Asia - based aircraft lessor, now Bank of China Aviation. He spent 2010 at the ADB as Head of PPP Advisory Services before returning to the private sector. He originally worked with KPMG in London and Hong Kong then with PWC in Sydney. He is based in Hong Kong. He first arrived there in 1982 and returned in 1998. For more details, please visit www.logiegroup.com
InfraPPP World S.L. +34 661 24 97 63 ama@infrapppworld.com www.infrappptraining.com

Infrastructure Finance in Asia

Singapore - 26, 27 and 28 November 2013

How to register
3 easy ways to register Web: www.infrappptraining.com/ Email: ama@infrapppworld.com Telephone: +34 661249763 Payment Methods Credit card - Online Direct Transfer: Please quote Infrastructure Finance Asia with the remittance advise Account Name: InfraPPP World S.L. Bank name: ING Direct Account Number: 1900014434 Swift Code: INGDESMMXXX IBAN: ES06 1465 0120 3619 0001 4434
All bank charges to be borne by payer. Please ensure that InfraPPP World S.L. receive the full invoiced amount.

Prices
UP TO SEPT. 20TH AFTER SEPT. 20TH

Group discounts 2 delegates: 10 % discount 3 delegates: 15 % discount 4 delegates: 20 % discount

* All prices include VAT, if applicable.

EARLY BIRD US$2,899

FULL US$3,299

Cancellation policy If any registered delegate cannot attend our course, a replacement is always welcome. Cancellations must be made in writing (letter) with InfraPPPs acknowledgement. Written cancellations must reach this office 30 days before the programme commences. A full refund less an administration charge of US$150 will be given. For any written cancellation requests that reach us less than 30 days before the event, no refunds will be given. Flights and hotel accommodation should only be purchased when our logistics team contact you to confirm the course venue. The attendee is solely responsible for their flight and accommodation arrangements and costs. In the unlikely event InfraPPP should have to cancel an event it will not be responsible for any costs incurred by attendees. InfraPPP therefore recommends that clients purchase fully refundable air tickets and accommodation. Disclaimer InfraPPP World S.L. (InfraPPP) reserves the right to alter any part of the published programme or faculty. In the event of course cancellation by InfraPPP due to unforeseen circumstances, InfraPPP limits its liabilities to refunding the tuition fee of the course. Fee includes tuition, documentation, lunch and refreshments. Delegates are responsible for their own flights and accommodation. An invoice will be sent upon receipt of registration form.

InfraPPP World S.L. +34 661 24 97 63 ama@infrapppworld.com www.infrappptraining.com