Investment Appraisal and Risk Analysis

Participants will learn how to conduct the Integrated Analysis of Investment Projects including financial, economic, risk and stakeholder analysis. They will gain skills in the design and testing of risk management contracts, public private partnerships (PPPs), and the evaluation of project financing options.

• Plan and assess all aspects of investment projects
• Add value through the redesign of projects
• Prepare project financing agreements
• Design strategies to address stakeholder concerns
• Develop sustainable PPP models

CONTENT

Financial Modeling

• Project environment
• Stages in development of feasibility studies
• Development of project cash flows
• Different perspectives and project sustainability
• Projection of real prices through time
• Insuring consistency among nominal prices, exchange rates, and interest rates
• Evaluation of debt service capacity
• Uses and limitations of different investment criteria
• Scale and timing decisions
• Privatization and regulation issues

Risk Analysis and Project Finance

• Assessing sources and nature of project variability
• Risk assessment techniques
• Monte Carlo Simulation using Crystal Ball
• Quantification of risk variables
• Project financing
• Public-Private Partnerships
• Risk management
• Management of Contingent Liabilities
• Evaluation of contracts and Project Viability
• Public investment management

Economic Analysis

• Economic valuation of marketed and non-marketed goods and services
• Economic opportunity cost of capital
• Economic cost of foreign exchange
• Economic cost of human resources
• Cost effectiveness analysis

Environmental Analysis

• Economic valuation of environmental impacts
• Integration of environmental analysis with project appraisal

Stakeholder Impact Assessment

• Identification of stakeholders
• Measurement of projects’ impact on each group of stakeholders
• Social analysis of projects: basic needs analysis

TRAINING METHODOLOGY

The training methodology combines lectures, discussions, group exercises and illustrations. Participants will gain both theoretical and practical knowledge of the topics. The emphasis is on the practical application of the topics and as a result participant will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.