F-202

Building and Analyzing Financial Models II

CEUs: 6.0

Course Description

The development and analysis of financial models are an essential component of any PPP/project finance transaction. Financial models are necessary to evaluate the economics of a project, for negotiations among stakeholders and are a key component of the final documentation.

In this IP3 course we focus exclusively on the basic techniques of building, interpreting, and analyzing a financial model using Microsoft Excel®.

While the development and analysis of project finance models are often delegated to external financial advisors, it is important that certain selected public officials involved in a transaction not only have an understanding of how financial models work but also to have the capability to manipulate the financial model.

The objective of this course is twofold. The first is to provide the participant with the tools to build a financial model and effectively manage third-party financial advisors. The second is to provide a knowledge base for the level III financial modeling course, which is geared toward officials responsible for developing financial models for project financing.

Learning Outcomes

Through successful completion of this course, participants will be able to:

  • Describe the purpose and scope of project financial models (i.e., what a financial model is and why project stakeholders need it)
  • Identify the financial model’s key outputs and calculate them
  • Construct a semi-flexible financial model inclusive of key model building blocks
  • Design a funding sheet with debt financing
  • Construct pro-forma financial statements
  • Describe how the building blocks in the financial model are linked to each other
  • Manage assumptions to affect results
  • Design, set-up, and effectively label spreadsheets for project financings

Who Will Benefit

  • National, regional, and local government officials responsible for infrastructure financial modeling
  • Contract officers and regulatory commissioners
  • Financial analysts from PPP or privatization units
  • Public servants, utility managers, executives, and financial experts
  • Audit or project managers
  • Staff of bilateral and multilateral international organizations

Related Courses