Feasibility Report

MAIN PROJECT FINANCIAL MODEL FUNCTIONS

1. Prepare cash flow projections
Cost of capital
Total project cost estimate
Contingency for cost overrun
Ownership management
Project economics
Cash flow projections

2. Evaluate project debt capacity
Borrowing capacity
Annual coverage tests
Interest rate risk

3. Calculate rates of return
Return to limited partnership equity
Return to sponsor equity

4. Sensitivity analysis
Variations in key drivers such as Tariffs, fixed costs, interest rates,
Inflation, EPC contract price, concession period, public grants,
Productions input prices, exchange rates.

5. Scenario simulations
Baseline optimistic and worst-case scenarios
Monte Cario simulations
Effect on debt service capacity
Impact on project value

6. Model output and Interpretation of results
Cash flow summary
Project NPV
Lender’s cover ratios
Base case equity and Project IRR
P AND L statement and balance sheet