Dates: April 24–May 5, 2017
Location: Washington, DC
Financing of an infrastructure project must start with one premise in mind: is the project opportunity bankable given a set of financial assumptions and agreed-to risk allocations?
To successfully create a financial picture of the project opportunity, an array of actions must be put into motion: input variables must be identified, numbers crunched, and forecasts created to determine financial viability. Without this systematic and comprehensive financial planning, review, and analysis, the project development process will almost inevitably stall and will likely fail to materialize.
The Introduction to Project Finance Financial Modeling course focuses exclusively on the techniques of building, interpreting, and analyzing a financial model using Microsoft Excel® software.
The class structure is unlike any other that the Institute for Public-Private Partnerships, A Tetra Tech Company (IP3), offers, as the focus each day is on learning certain financing and accounting techniques, and practicing those techniques in an ongoing project case study.
The IP3 financial modeling instructor will teach the fundamentals of the spreadsheet software. The instructor then will build further elements into the financial model so that, by the end of the course, participants will understand key accounting and financial terms and concepts and will have applied them to a simulated public-private partnership (PPP) model.
- Identifying the key accounting and financial terms and concepts used in financial models
- Applying best practices for spreadsheet modeling
- Analyzing the key input variables to an infrastructure financing spreadsheet
- Integrating and linking key financial statements in financial models, including the profit and loss, balance sheet, and cash flow waterfall
- Building a capital expenditure worksheet that details the timing and amounts of capex including interest capitalized during construction
- Developing a funding worksheet that helps determine the debt capacity of a project
- Interpreting key output worksheets which summarize the profitability measures (NPV and IRR) and various debt-cover ratios
- Performing key sensitivity and scenario analyses to determine how robust the project is under a range of downside assumptions