Course Description

The third course in our financial modeling series familiarizes participants with financial modeling and the relationship between the financial model and the underlying contracts in a limited recourse project finance transaction. The program is structured around a series of lectures and classroom simulations that will familiarize participants with the essential structure of power purchase agreements (PPA) and interrelated contracts, such as engineering, procurement and construction (EPC); fuel supply and operating agreements; and financing agreements. Participants will also build a financial model for a hypothetical gas-fired power plant using realistic numbers and assumptions geared to terms in the PPA.

This innovative course will use the financial model to structure realistic negotiation simulations. It will give the participants opportunities to gain hands-on, useful technical skills that can be applied in virtually any project judgment and implementation. Although the course will rely heavily on power sector technical and economic concepts, no prior sector specialization is required.