Project Finance

Large Capital Projects require significant cash flows over a long period of time. If these cash flows are not carefully monitored, it is impossible to assess the feasibility or profitability of a project.

Our Project Finance Models are both dynamic and can be tailored to your specific needs.

As businesses and economies expand, there will often be the need to undertake large, long-term construction Projects. These may range from government Infrastructure Projects (e.g. building a toll toad, a port or a power plant) to private Capital Projects (e.g. building a factory plant).

Because of the significant capital expenditure required, these Projects typically require are typically ring-fenced into Special Purpose Vehicles. Although there may be some level of Equity Contribution by the Owners (or Sponsors) of the Project, the vast majority of the Funding will be through Long-Term Interest-Bearing Loans (from Lenders).

The entire Life Cycle of a Project may last several decades, and it soon becomes very tricky to keep track of all the cash inflows and outflows during this time. As can be seen from above, these cash flows will include Capital Expenditure, Debt Drawdowns, Revenue, Operational Costs, Taxes, Finance Costs, Debt Repayments, Decommissioning Costs and so on. Without a firm grip on each of these, it is impossible to see how Profitable the Project actually is.

To assist you, we therefore construct (and deliver to you) dynamic Financial Models which aim to capture the various Phases of the Project’s Life Cycle and their respective cash flow categories. The general structure of our Financial Models is set out below (and more information can be found here):

Please Contact us for more information on how we can assist you with the construction of Project Finance Financial Models.