Project finance modelling course

Dominic Robertson runs project finance modelling courses at BPP in London.   To find out more see BPP Project Finance Modelling.

Course Level

Intermediate

Delegates

This two-day course is directed at those delegates working in or alongside the project finance or PFI world, who need to develop the skills to build or interpret integrated Excel-based models. Delegates should have some experience of the fundamentals of modelling. This course is outside of our core Financial Modelling courses and is suitable for those with a particular interest in modelling in the context of Project Finance. Follow these links for information regarding Financial Modelling – IntroductionFinancial Modelling – Comprehensive and Financial Modelling - Advanced (& Introduction to VBA) . Courses are limited to a maximum of twelve delegates, allowing each attendee to experience outstanding tutor support throughout the two days.

Course content

The aim of the course is to give delegates a robust and flexible method for building project models, and to train them in established design solutions to the common challenges presented by project models. In particular this will address the needs for time flexibility; flexible capex linked financing avoiding circularity; and scenario management.The course will be built around a live project case which will model a merchant or tolling IPP power project.

Learning objectives include obtaining a greater understanding of:

  • Design Principles and Best Practice
    • 1st rule of financial modelling – design, design, design
    • Modular design, the fundamentals
    • Design questionnaire
    • Project and PFI modelling defining in the problems
    • Creating a flexible non-circular funding scheme
    • Dealing with varying length forecasting periods
  • Time Management
    • Some popular design approaches
    • Creating a date flexible framework, varying period length from construction to operation
    • Flexing timing of events -Using flags
    • Flexible consolidation of periods to years – Index, Offset, Sumif
  • Construction Period Sources and Uses
    • Design approach
    • Dealing with circularity – interest during construction and sizing commitments, using goal seek
    • Creating a simple funding scheme with term debt and residual equity funding
  • Building the Model
    • Lookup tables – alternatives for generating revenues based on different load factors and thermal efficiencies
  • Cash Flow Cascade and Reserves
    • Typical priority of payments
    • Debt service reserve account
    • Capital maintenance reserve
    • Building a cash flow cascade
    • Accounts integration
  • Project Ratios
    • LLCR definition
    • DSCR definitions
    • Debt repayment profile optimization
  • Model Flexibility - Scenario Management
    • Implementing alternative debt structures
    • Excel’s scenario manager
    • Vlookup
    • Index, Choose and Offset
    • Visual basic tools
  • Consolidation
    • Dealing with multiple operating units and consolidating into a pro forma group accounts
    • Merger accounting
    • Consolidation eliminations
    • Consolidation template methodology

To find out more see BPP Project Finance Modelling