COURSE OVERVIEW:

The meaning of financial risk mitigation and de-risking for energy infrastructure refers to the strategic identification and neutralization of hazards that threaten the profitability and bankability of large-scale energy assets. This course focuses on the "Risk-Return" profile of infrastructure projects, where massive upfront capital is exposed to multi-decade uncertainties, including regulatory shifts, resource volatility, and geopolitical instability. By applying robust de-risking frameworks, developers can lower the cost of capital and unlock financing for the energy transition.

The scope of this training covers the entire spectrum of risks, from "Pre-completion" hazards like construction delays and EPC contractor insolvency to "Post-completion" risks such as market price fluctuations and grid curtailment. It examines the use of sophisticated financial instruments, including hedges, swaps, and insurance products, designed to transfer risk away from the project SPV. The course provides a deep dive into the role of Multilateral Development Banks (MDBs) and Export Credit Agencies (ECAs) in providing political risk insurance and partial risk guarantees.

Coverage includes the analysis of contractual de-risking through "Take-or-Pay" clauses and liquidated damages in EPC and O and M agreements. The course addresses the critical challenge of "Bankability" in emerging markets, focusing on currency risk mitigation and the use of "Escrow Accounts." Participants will gain practical expertise in developing a comprehensive "Risk Register" and a proactive mitigation strategy that satisfies the stringent due diligence requirements of international lenders and institutional investors.

COURSE OBJECTIVES:

After completion of this course, the participants will be able to:

1. Categorize the diverse financial risks inherent in energy infrastructure.
2. Utilize "Risk Allocation Matrices" to assign risks to the most capable parties.
3. Implement hedging strategies for currency, interest rate, and commodity price risk.
4. Evaluate the role of "Political Risk Insurance" (PRI) in emerging market projects.
5. Structure EPC and O and M contracts to minimize construction and operational risk.
6. Design "Credit Enhancement" mechanisms to improve project credit ratings.
7. Manage "Resource Risk" through P90 yield assessments and production guarantees.
8. Mitigate "Counterparty Risk" through parent company guarantees and LCs.
9. Navigate the requirements for "Force Majeure" and change-in-law protections.
10. Utilize "Partial Risk Guarantees" (PRG) from international financial institutions.
11. Build a "Risk-Adjusted" financial model to determine project viability.
12. Formulate a comprehensive risk management plan for an energy infrastructure asset.

TARGET AUDIENCE:

This course is designed for Infrastructure Developers, Risk Managers, Project Finance Officers, Legal Advisors, Government Energy Planners, and Investment Bankers focused on the energy sector.

TRAINING COURSE METHODOLOGY:

A highly interactive combination of lectures, discussion sessions, and case studies will be employed to maximize the transfer of information, knowledge, and experience. The course will be intensive, practical, and highly interactive. The sessions will start by raising the most relevant questions and motivating everybody to find the right answers. The attendants will also be encouraged to raise more of their questions and to share in developing the right answers using their analysis and experience. There will also be some indoor experiential activities to enhance the learning experience. Course material will be provided in PowerPoint, with necessary animations, learning videos, and general discussions.

The course participants shall be evaluated before, during, and at the end of the course.

COURSE CERTIFICATE:

National Consultant Centre for Training LLC (NCC) will issue an Attendance Certificate to all participants completing a minimum of 80% of the total attendance time requirement.