Project Finance

  1. Financial Modeling and Analysis
    1. Model Development Framework
      1. Model Structure and Design
        1. Modular Architecture
          1. Input-Calculation-Output Structure
            1. Transparency Requirements
              1. Audit Trail Maintenance
              2. Key Assumptions and Inputs
                1. Construction Cost Estimates
                  1. Operating Cost Projections
                    1. Revenue Forecasts
                      1. Financing Terms
                        1. Macroeconomic Assumptions
                        2. Model Validation and Testing
                          1. Logic Testing
                            1. Calculation Verification
                              1. Sensitivity Testing
                                1. Scenario Analysis
                              2. Construction Period Modeling
                                1. Capital Expenditure Scheduling
                                  1. Drawdown Profiles
                                    1. Payment Milestones
                                      1. Contingency Provisions
                                        1. Working Capital Requirements
                                        2. Interest During Construction
                                          1. Capitalization Methods
                                            1. Compounding Calculations
                                              1. Fee Capitalization
                                                1. Commitment Fee Treatment
                                                2. Construction Risk Modeling
                                                  1. Cost Overrun Scenarios
                                                    1. Schedule Delay Impacts
                                                      1. Contingency Utilization
                                                        1. Change Order Management
                                                      2. Operations Period Modeling
                                                        1. Revenue Stream Modeling
                                                          1. Capacity Payments
                                                            1. Energy Payments
                                                              1. Ancillary Revenue
                                                                1. Escalation Mechanisms
                                                                2. Operating Cost Projections
                                                                  1. Fixed Operating Costs
                                                                    1. Variable Operating Costs
                                                                      1. Maintenance Expenditures
                                                                        1. Insurance Premiums
                                                                        2. Tax and Depreciation Modeling
                                                                          1. Depreciation Methods
                                                                            1. Tax Shield Benefits
                                                                              1. Tax Payment Timing
                                                                                1. Deferred Tax Calculations
                                                                              2. Debt and Financing Modeling
                                                                                1. Debt Drawdown Schedules
                                                                                  1. Construction Period Draws
                                                                                    1. Interest Rate Applications
                                                                                      1. Fee Calculations
                                                                                        1. Commitment Reductions
                                                                                        2. Debt Service Calculations
                                                                                          1. Principal Repayment Schedules
                                                                                            1. Interest Calculations
                                                                                              1. Debt Service Reserve Account
                                                                                                1. Prepayment Modeling
                                                                                                2. Cash Flow Waterfall Modeling
                                                                                                  1. Revenue Collection
                                                                                                    1. Operating Expense Payments
                                                                                                      1. Debt Service Priority
                                                                                                        1. Distribution Calculations
                                                                                                      2. Financial Metrics and Ratios
                                                                                                        1. Debt Service Coverage Ratios
                                                                                                          1. Annual DSCR Calculations
                                                                                                            1. Minimum DSCR Requirements
                                                                                                              1. Average DSCR Analysis
                                                                                                                1. DSCR Covenant Testing
                                                                                                                2. Loan Life Coverage Ratio
                                                                                                                  1. Present Value Calculations
                                                                                                                    1. Discount Rate Selection
                                                                                                                      1. LLCR Interpretation
                                                                                                                        1. Lender Requirements
                                                                                                                        2. Project Life Coverage Ratio
                                                                                                                          1. Full Project Life Analysis
                                                                                                                            1. Terminal Value Considerations
                                                                                                                              1. PLCR Benchmarking
                                                                                                                                1. Risk Assessment Implications
                                                                                                                                2. Return Metrics
                                                                                                                                  1. Equity Internal Rate of Return
                                                                                                                                    1. Project Internal Rate of Return
                                                                                                                                      1. Net Present Value Calculations
                                                                                                                                        1. Return on Investment Analysis
                                                                                                                                      2. Risk Analysis and Sensitivity Testing
                                                                                                                                        1. Sensitivity Analysis Framework
                                                                                                                                          1. Key Variable Identification
                                                                                                                                            1. Range Determination
                                                                                                                                              1. Impact Assessment
                                                                                                                                                1. Tornado Diagrams
                                                                                                                                                2. Scenario Analysis
                                                                                                                                                  1. Base Case Development
                                                                                                                                                    1. Upside Scenarios
                                                                                                                                                      1. Downside Scenarios
                                                                                                                                                        1. Stress Testing
                                                                                                                                                        2. Monte Carlo Simulation
                                                                                                                                                          1. Probability Distribution Assignment
                                                                                                                                                            1. Correlation Modeling
                                                                                                                                                              1. Output Analysis
                                                                                                                                                                1. Risk Quantification
                                                                                                                                                                2. Break-Even Analysis
                                                                                                                                                                  1. Revenue Break-Even Points
                                                                                                                                                                    1. Cost Break-Even Analysis
                                                                                                                                                                      1. Financing Break-Even
                                                                                                                                                                        1. Operational Break-Even

                                                                                                                                                                    Previous

                                                                                                                                                                    6. Key Project Agreements and Documentation

                                                                                                                                                                    Go to top

                                                                                                                                                                    Next

                                                                                                                                                                    8. Financing Process Management