Infrastructure Finance Simulation

In this Infrastructure Finance Simulation, participants structure, finance, and manage a long-term infrastructure project, balancing complex risks, stakeholder interests, and financial viability in a dynamic environment.

Infrastructure Finance Simulation Overview

Participants navigate the end-to-end process of bringing a major infrastructure asset, such as a renewable energy plant, toll road, or utility. From conception to financial close and into operation. Each round introduces critical real-world challenges: shifting regulatory landscapes, construction delays, fluctuating interest rates, community opposition, and evolving environmental, social, and governance standards.

Teams must collaborate and compete to secure funding, negotiate contracts like Public-Private Partnerships, optimize capital structure, and manage operational risks to ensure the project delivers long-term value for investors and the public.

This simulation is ideal for MBA programs, executive education in project finance, corporate training for developers and banks, and workshops for public-sector officials, providing an immersive experience in the unique crossroads of finance, public policy, and engineering.

Infrastructure Finance Simulation Concepts

Participants work through realistic scenarios, which can be customized to emphasize or exclude specific topics depending on the learning goals. This modular structure allows the simulation to be tailored to any type of session. Key concepts include:

Project finance structures and Special Purpose Vehicles
Public-Private Partnership models and concession agreements
Financial modeling for infrastructure: construction vs. operational phases
Risk identification, allocation, and mitigation
Capital structuring with debt, equity, and mezzanine financing
Debt sizing, covenants, and loan life coverage ratios
Tariff/Revenue structuring and government support mechanisms
ESG integration and sustainable finance principles
Lifecycle management and refinancing opportunities
Stakeholder management and community engagement

Gameflow

What Participants Do

In the simulation, participants will:

Develop a bankable proposal and financial model for a new infrastructure asset.
Negotiate terms with equity investors, commercial banks, and development finance institutions.
Structure contracts to optimally allocate risks between public and private entities.
React to simulated "risk events" during construction and operation, adjusting strategy accordingly.
Optimize the capital stack to minimize the cost of funding while maintaining flexibility.
Present investment cases and project updates to a simulated board or oversight committee.
Analyze refinancing options during the operational phase to enhance returns.
Balance financial returns with ESG commitments and public interest requirements.

Learning Objectives

By the end of the simulation, participants will be able to:

Understand the unique principles and structures of project finance versus corporate finance.
Develop and stress-test a financial model for a capital-intensive, long-duration project.
Evaluate and allocate key project risks to the most appropriate party.
Design a capital structure that aligns with project cash flows and risk profile.
Apply core concepts of PPPs and concession agreements.
Integrate ESG criteria into project planning, financing, and reporting.
Negotiate effectively from the perspectives of different stakeholders (sponsor, lender, public entity).
Make strategic decisions to ensure project viability through volatile economic cycles.
Communicate complex financial and technical proposals clearly to diverse audiences.

How the Infrastructure Finance Simulation Works

This simulation can be run individually or in teams in academic or corporate contexts. Each cycle represents a stage of getting through a pressing financial situation.

1. Project Initiation Teams receive the project brief, including technical specs, market studies, and preliminary feasibility reports.

** 2. Analysis and Structuring** Participants analyze data, build their base-case financial model, and propose an initial financing and contractual structure.

3. Stakeholder Negotiation Teams engage in negotiations (as sponsors, lenders, or government agencies) to agree on terms, pricing, and risk-sharing.

4. Decision Submission Teams submit their comprehensive financing plan and key contracts into the simulator.

5. Scenario Roll-Out The simulator introduces new economic data, regulatory changes, or project-specific risk events.

6. Strategic Adjustment Teams must adapt their plans, manage crises, and potentially renegotiate terms based on the new scenario.

7. Communication and Reporting Participants prepare and deliver a concise update for investors or public stakeholders, justifying their decisions.

Frequently Asked Questions

Who is the infrastructure finance simulation designed for? It's designed for anyone seeking to understand long-term asset financing, including students targeting careers in project finance, infrastructure funds, investment banking, development finance, corporate finance, and public policy executives involved in PPPs.
Do I need prior experience in infrastructure or project finance? No prior specialized experience is required. The simulation includes foundational instructional content, making it suitable for beginners, while the advanced scenarios provide depth for experienced professionals.
How long does a typical simulation run take? The core simulation is designed for 4-8 hours of engaged activity, which can be delivered in one intensive session or split across multiple modules over several days or weeks.
Is this an individual or team-based exercise? It is primarily a team-based simulation, reflecting the collaborative, multi-party nature of real infrastructure deals. Teams compete and negotiate against each other, mimicking market dynamics.
What types of infrastructure projects are covered? The core simulation uses a generic but detailed project model. It can be easily customized to focus on specific sectors like renewable energy, transportation, social infrastructure, or digital assets.
Are the financial models and scenarios realistic? Yes. The simulation uses financial mechanics and risk scenarios developed by infrastructure finance practitioners, based on real-world deal structures and challenges.
Can the simulation be customized for our specific learning goals? Absolutely. Instructors can tailor the project type, geographic setting, risk events, and the weighting of key concepts like ESG or advanced refinancing to match their curriculum.
How is participant performance measured? Performance is multi-dimensional, measured by the robustness of the financial structure (debt service coverage, equity IRR), quality of risk mitigation, success in negotiations, and clarity of stakeholder communication.

Assessment

Assessment of participant performance can be tailored according to the host institution’s objectives (business school, corporate training, assessment centre). Typical assessment criteria include:

Resilience of the financial model, achievement of target returns (Equity IRR), and debt service coverage ratios under stress.
Effectiveness in identifying, allocating, and mitigating key project risks.
Innovation and completeness of the financing and contractual structure.
Ability to secure favorable terms while maintaining a workable partnership.
Clarity and persuasiveness in written and oral updates to simulated stakeholders.