This course is designed so that participants can begin to understand the different risk issues in Transportation and Social Infrastructure Sectors
Participants are guided through the key risk issues in transportation and social infrastructure assets which are reliant on revenues which are linked to either: a) government concession agreement or b) the economic market.
The course will cover social infrastructure financings which are supported by revenues generated through a concession agreement. E.G. Schools, Hospitals, Roads, etc.
The course will then cover transportation asset which have revenues linked to the economy? E.G. Roads, Airports and Ports etc.
The course highlights the different “key credit factors” which can be found in both the Transportation and Social infrastructure sector.
The course will aim to guide the participants on which Transportation and Social infrastructure sector assets are perhaps stronger and which could be seen as weaker.
The course is led by Ian Dixon, who shares his knowledge gained from four decades of experience in the global infrastructure and credit ratings market, including the social and transportation infrastructure market. The course is delivered by live webinar over one half day (3 ½ hour) session, including one 15-minute break.
Key outline of Social Infrastructure
- Agreement with Government entity to build and operate a social asset for an agreed period
- Guaranteed income if asset provided and operated to an agreed standard
- Operating costs need to be managed
Key Credit Risk Factors for Social Infrastructure.
- Availability Payment stream
- Counterparty Risk
- Payment deductions for poor performance or non-availability
- Staffing issues – cleaners, maintenance staff etc.
- Cost base adjustment
Key outline of Transportation Infrastructure
- Concession Agreement with Government entity to build and operate a transportation asset for an agreed period
- No guaranteed revenue steam
- Operating costs need to be managed
Key Credit Risk Factors for Transportation Infrastructure.
- Volume and price revenue risk
- Location – competition – essentiality
- Elasticity and diversity of revenues
- Customer diversity
- Variability of cost base