Electricity Project Finance Modelling Analysis

Analysis of Project Finance Models is a 3-day course that will provide you with the ability to understand nuances of project finance theory through analysing and understanding project finance models.

The course is designed so that the participants can understand and assess the models that other people create inside and outside of the organisation.

By working with actual models in a hands-on environment, you will be better able to quantify risks of different types of projects and you will be able to use models to assist in the negotiation of contracts.

The course is designed so that you understand the importance of: (1) how models should be structured; (2) debt structuring in models; (3) developing the funding parts of the model before commercial operation and problems with circular references that arise from interest during construction fees and the debt service reserve account; and (4) building flexible models with effective summary statistics.

The course will show you how to construct models that are accurate with effective error checks to verify the model so that your models can incorporate complex cash flow waterfalls, alternative funding cascades and sculpted repayment techniques, allowing transparency and equipping users with a clear understanding.

Additionally, the participants will learn how to use advanced techniques to resolve circular references associated with funding of a project and debt sculpting that use VBA functions rather than macros.

Learning Objectives:

• Evaluate and review actual models with case studies to assess overall economics of projects.
• Understand project finance models in the context of finance theory related to subtle issues associated with contract structuring, debt sizing, debt funding, debt repayment, debt servicing costs and credit enhancements.
• Interpret models developed by other people and add master scenario pages to any model using case studies of actual models.
• Create flexible models with effective summary statistics to evaluate alternative timing, operating assumptions, financial structures, re-financing and contract pricing.
• Work through the difficult problems in project finance modelling including
• Complex cash flow waterfalls with balloon payments and mini-perm structures
• Sizing of debt with capitalized interest and alternative drawdown schedules
• Flexible debt sculpting with income taxes
• Understand the benefits of creating user defined functions rather than copy and paste macros to resolve any circular reference problems in project finance models including funding problems and debt sculpting.
• Learn Excel techniques with some VBA to make better presentations from models and to make models more transparent and efficient.

Target Audience:

• Project finance analysts
• Financial analysts, business development professionals
• Project developers and managers
• Infrastructure investment professionals and investors
• Power utility corporate finance professionals
• Company accountants and government power industry regulators