Mastering Project Finance Models

A building block approach that cuts through the complexity

Mastering Project Finance Models

Mastering Project Finance Models takes the learner step-by-step through the process of building a fully scoped project finance model from a clean spreadsheet. Leveraging the power of video and interactive multi-media, the course uses a structured building block approach to offer a learning experience that provides a solid foundation in modelling skills for the project finance practitioner.

Each topic is comprehensively covered using e-learning content, downloadable PDF tutorials (with cell by cell instructions) and customised excel spreadsheets. Unlimited one-on-one instructor support via e-mail is included.

16 Core Modules

USD 3,300

1) Introduction to the Course

Objectives:

The objective of this module is to introduce the learner to the world of project finance models. The learner is shown how all project finance models can be broken down into 10 core components. This module lays the foundation for the building block approach that is followed in the rest of the
Course.

Topics Covered:

10 core components of project finance models and their function; linkages between the components; order in which the components should logically be built.

Methodology:

E-learning content and downloadable pdf tutorial.

2) Model Layout and Best Practice

Objectives:

The objective of this module is to provide the learner with a thorough understanding of the importance of model layout and structure. In addition, a number of modelling best practice topics are covered that help the learner develop good modelling habits from the outset and makes the modelling
task accurate and efficient.

Topics Covered:

Model layout and structure; number conventions; cell formatting; proper use of formulas; when to use and not use range names and macros; use of Error Checks ; Excel cell styles feature.

Methodology:

E-learning content including video content and downloadable PDF tutorial.

3) Model Assumptions and the Power Project

Objectives:

The objective of this module is to introduce the learner to the Power Project and key model assumptions that are used in the model over the remainder of the course.

Topics Covered:

Key model inputs and the overall contractual structure; importance of a formal Assumptions Book ; proper use of the Assumptions Book to record and monitor the source of key model assumptions.

Methodology:

E-learning content and downloadable PDF tutorial.

4) Model Building Steps and Excel Essentials

Objectives:

The objective of this module is to provide the learner with a detailed road map of the model construction process using a building block approach. In addition, essential Excel features and operations are reviewed.

Topics Covered:

10 key steps for building a project finance model; main linkages between the model components; Excel functions, error messages, and shortcuts; copying and pasting across rows, absolute and relative cell referencing; Excel add-ins; automatic and manual recalculations.

Methodology:

E-learning content including video content and PDF tutorial.

5) Construction Costs

Objectives:

The objective of this module is to provide the learner with a thorough understanding of how to model construction costs. The inputs required, the main calculations and the outputs are discussed along with their translation into spreadsheet logic.

Topics Covered:

Construction costs – main cost items; best way to input cost assumptions into model; how to calculate escalation factors and escalate costs; how to model monthly, quarterly and annual dates; how to create construction and operations period flags; how to create linkages to other modules; Excel functions and operations.

Methodology:

The e-learning content explains key concepts and overall logic. This is supplemented with a video demonstration of each step along with detailed on-screen explanations. In addition, a downloadable PDF tutorial provides detailed cell by cell instructions as a off-line reference. Finally, a “Check” spreadsheet against which the learner can check progress is included.

6) Construction Funding

Objectives:

The objective of this module is to provide the learner with a clear understanding of how to model different construction funding structures. Different debt and equity draw down arrangements are discussed along with techniques for making the model flexible so the user can switch from one
option to another.

Topics Covered:

Debt and Equity draw down arrangements; how to input construction funding assumptions into the model; how to create a funding waterfall; conversion of monthly cash flow to quarterly and annual cash flow; Excel functions required for module; “Sources and Uses of Funds” summary.

Methodology:

The e-learning content explains key concepts and overall logic. This is supplemented with a video demonstration of each step along with detailed on-screen explanations. In addition, a downloadable PDF tutorial provides detailed cell by cell instructions as a off-line reference. Finally, a “Check” spreadsheet against which the learner can check progress is included.

7) Term Debt

Objectives:

The objective of this module is to provide the learner with the skills to model different Term Debt repayment profiles including quarterly, semi- annual or annual repayments and to integrate these calculations with the rest of the model. The logic required for building a DSRA is also covered.

Topics Covered:

Key inputs, calculations and outputs; how best to input Term Debt assumptions; building credit foncier, equal repayment or “sculpted” repayment profiles; how to build in the flexibility to switch between different profiles; how best to incorporate different margins, interest only periods and hedging profiles into the Term Debt calculations.

Methodology:

The e-learning content explains key concepts and overall logic. This is supplemented with a video demonstration of each step along with detailed on-screen explanations. In addition, a downloadable PDF tutorial provides detailed cell by cell instructions as a off-line reference. Finally, a “Check” spreadsheet against which the learner can check progress is included.

8) Revenues

Objectives:

The objective of this module is to provide the learner with a thorough understanding of how to model Revenue calculations by breaking them down into Price and Quantity calculations.

Topics Covered:

Key inputs, calculations and outputs; how best to input assumptions; deriving the Quantity and Price for a power plant; calculating escalation factors; typical tariff components; use of “flags” to switch calculations on and off.

Methodology:

The e-learning content explains key concepts and overall logic. This is supplemented with a video demonstration of each step along with detailed on-screen explanations. In addition, a downloadable PDF tutorial provides detailed cell by cell instructions as a off-line reference. Finally, a “Check” spreadsheet against which the learner can check progress is included.

9) Operating Costs

Objectives:

The objective of this module is to provide the learner with a thorough understanding of how cost calculations can be modelled by breaking them down into Fixed and Variable costs.

Topics Covered:

Key inputs, calculations and outputs; calculating fixed and variable costs after adjusting for inflation; linkages to other modules.

Methodology:

The e-learning content explains key concepts and overall logic. This is supplemented with a video demonstration of each step along with detailed on-screen explanations. In addition, a downloadable PDF tutorial provides detailed cell by cell instructions as a off-line reference. Finally, a “Check” spreadsheet against which the learner can check progress is included.

10) Major Maintenance

Objectives:

The objective of this module is to show the learner how to model the main calculations required for the Major Maintenance Module including the Maintenance Reserve Account (MRA).

Topics Covered:

Setup of the Assumptions Sheet to give the user flexibility in relation to timing of the major maintenance; converting consultant’s real dollar estimates to nominal dollar estimates; creating a reserving profile to ensure the project has sufficient funding for major maintenance expenditure; modelling the MRA; setting up the worksheet so data can flow to other modules that require these calculations.

Methodology:

The e-learning content explains key concepts and overall logic. This is supplemented with a video demonstration of each step along with detailed on-screen explanations. In addition, a downloadable PDF tutorial provides detailed cell by cell instructions as a off-line reference. Finally, a “Check” spreadsheet against which the learner can check progress is included.

11) Depreciation

Objectives:

The objective of this module is to provide the learner with the skills and understanding to model different types of depreciation regimes.

Topics Covered:

Key inputs, depreciation calculations and outputs; different types of depreciation regimes; setting up the model to switch from one type of depreciation to another; incorporating depreciation of future major maintenance into the model; building error checks into the model; Excel functions required to build module

Methodology:

The e-learning content explains key concepts and overall logic. This is supplemented with a video demonstration of each step along with detailed on-screen explanations. In addition, a downloadable PDF tutorial provides detailed cell by cell instructions as a off-line reference. Finally, a “Check” spreadsheet against which the learner can check progress is included.

12) Working Capital

Objectives:

The objective of this module is to instruct the learner about the impact of working capital requirements on project cash flow and the best way to model these impacts in the model calculations.

Topics Covered:

Calculation of accounts receivables, accounts payable and inventory; calculating working capital requirements for a modelling period; modelling drawdown and repayments from a working capital facility; incorporating error checks into the calculations.

Methodology:

The e-learning content explains key concepts and overall logic. This is supplemented with a video demonstration of each step along with detailed on-screen explanations. In addition, a downloadable PDF tutorial provides detailed cell by cell instructions as a off-line reference. Finally, a “Check” spreadsheet against which the learner can check progress is included.

13) Tax

Objectives:

The objective of this module is to provide the learner with a clear understanding of how to calculate the tax liability of the project company while incorporating any carried forward tax losses from the construction phase and the early years of the operations phase.

Topics Covered:

Key inputs, calculations and model outputs; calculating taxable income and tax payable; creating a tax loss account to track generation and usage of tax losses from period to period.

Methodology:

The e-learning content explains key concepts and overall logic. This is supplemented with a video demonstration of each step along with detailed on-screen explanations. In addition, a downloadable PDF tutorial provides detailed cell by cell instructions as a off-line reference. Finally, a “Check” spreadsheet against which the learner can check progress is included.

14) Project Cashflow

Objectives:

The objective of this module is to provide the learner with a thorough understanding of how to model a cashflow waterfall and key debt and equity metrics.

Topics Covered:

Calculation of key metrics such as DSCR, Annual DSCR, Average DSCR, Average Loan Life, LLCR, PLCR, Equity IRR, Payback period; creating an annual summary of cashflow for presentation; use of various Excel functions pertaining to this module.

Methodology:

The e-learning content explains key concepts and overall logic. This is supplemented with a video demonstration of each step along with detailed on-screen explanations. In addition, a downloadable PDF tutorial provides detailed cell by cell instructions as a off-line reference. Finally, a “Check” spreadsheet against which the learner can check progress is included.

15) Financial Statements and Model Summary

Objectives:

The objective of this module is to show the learner how to create an Income Statement, a Balance Sheet and a Statement of Cashflow. In addition the learner is shown how to create and use a model summary.

Topics Covered:

Building an Income Statement and calculation of Gross Profit, EBITDA, EBIT, Net Profit after tax; calculation of Balance Sheet items and building an error check; calculating cash available for distribution, dividends paid and retained earnings; summarising results and creating a graph.

Methodology:

The e-learning content explains key concepts and overall logic. This is supplemented with a video demonstration of each step along with detailed on-screen explanations. In addition, a downloadable PDF tutorial provides detailed cell by cell instructions as a off-line reference. Finally, a “Check” spreadsheet against which the learner can check progress is included.

16) Using the Model & Change Log

Objectives:

The objective of this module is to show the learner how to modify the model and carry out different types of analyses.

Topics Covered:

Changing capital costs, sculpting the debt repayment profile to achieve target DSCRs, sensitivity analysis; scenario analysis; breakeven analysis; cash sweep analysis; creating a “Change Log”; printing and presenting results.

Methodology:

The e-learning content explains key concepts and overall logic. This is supplemented with a video demonstration of each step along with detailed on-screen explanations. In addition, a downloadable PDF tutorial provides detailed cell by cell instructions as a off-line reference. Finally, a “Check” spreadsheet against which the learner can check progress is included.

Who should take this Course?

TRUSTED BY COMPANIES BIG AND SMALL