Archive for the ‘project finance models’ Category:
How to develop your own project finance model
How to develop your own project finance model
In simplest terms, a project finance model is a business plan written in some sort of a spreadsheet implemented in software (e.g. MS Excel).
It is prepared primarily to assist a potential investor like you to assess numerous business alternatives that you might want to venture into — and decide which alternative would meet your investment objectives – capital requirement, payback, profitability or internal rate of return, cash flows and risks profile.
By preparing in advance a financial model and doing simple to complicated sensitivity tests, the potential investor is forewarned of any potential problems in advance so that mitigation measures are put in place to address such potential risks and problems.
It consists of the following worksheets (or tabs):
1) Assumption or Input worksheet
2) Capital Cost Estimation Worksheet
3) Project Schedule or Drawdown Worksheet
4) Total Project Cost Summary Worksheet (equipment, taxes, installation, land, working capital, capitalized expenses, capitalized interest during construction)
5) Loan Amortization Worksheet (interest, principal repayment)
6) Depreciation Worksheet (beginning balance, depreciation, ending balance)
7) Working Capital Worksheet (receivables, payables, stocks, training, mobilization)
8) Income & Expense Statement Worksheet
9) Balance Sheet Worksheet
Energy Technology Expert is also Project Finance and Financial Modeling Expert
Energy Technology Expert is also a Project Finance Modeling Expert.
He will help you provide data to set up your own business model for power plants, manufacturing plants and direct lending or lending investor business.
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