Project Finance Modelling

Course Overview

This course is meticulously designed to address the multifaceted nature of building financial models for infrastructure and large-scale projects, catering to various analytical needs.

This programme dives deep into the construction of valuation, feasibility, finance structuring, statistical probability, and data manipulation models, emphasizing the criticality of model design, from the analysis worksheet setup to ensuring logical flow and structured input control.

Participants will learn modelling best practices, including maintaining consistent timelines, formulae uniformity, managing circular references, and leveraging macros for enhanced efficiency.

The course further explores detailed analysis techniques such as sensitivity, breakeven, and scenario analysis, alongside practical construction phase considerations like cost overruns, maintenance cycles, and financing structures. Special attention is given to generation, revenue, operating costs, and volatility modelling, ensuring a comprehensive understanding of project dynamics and risk quantification. Participants will also master IRR modelling, addressing common errors and the correct methodology for implementing IRR calculations.

The course culminates in guiding students through finalizing models with advanced techniques for auditing, error checking, and model ‘debugging’, preparing them to create, evaluate, and optimize project finance models with confidence and precision.

Learning Objectives

• Understand and Apply Various Model Design Techniques: Participants will learn how to design financial models tailored to specific analytical purposes, including valuation and feasibility, finance structuring, statistical probability, and data manipulation. This includes structuring analysis worksheets, controlling inputs, and ensuring logical flow and coherent layout within the model.
• Master Modelling Best Practices: Students will gain proficiency in implementing best practices for financial modelling, such as ensuring consistent timelines, formula uniformity across rows, managing hard coding in formulae, avoiding and handling circular references, and enhancing model usability and efficiency through macros.
• Conduct Comprehensive Financial Analysis: Learners will be equipped to perform detailed financial analyses, including sensitivity, breakeven, and scenario analysis, to assess the financial viability and risk profile of project finance deals.
• Navigate the Construction Phase Financially: Participants will understand how to model and account for critical elements of the construction phase, such as cost overruns, delays, variation orders, staged payments, and the complexities of financing structures, including multiple tranche drawdowns and interest during construction.
• Model Generation, Revenue, and Operating Costs Accurately: The course will teach attendees to accurately model project generation, revenue, and operating costs, taking into account factors like plant load factor, outages, thermal efficiency, and various other operating expenses.
• Refine and Debug Financial Models: Students will learn the methodologies for finalizing financial models, including inserting status and summary worksheets, reconciling financial statements, addressing currency divergences, and applying techniques for model debugging and setting up controls and error warnings, ensuring the creation of robust, reliable project finance models.