The Financial Model (the “Model”) is a cash flow based project finance model that applies a set of stated assumptions in order to model the cash flows of a typical project finance PV solar project and produce forecast financial statements.
The model was created in Microsoft Excel and is based on best practice financial modeling standards.
The Model’s building blocks are distributed between preliminary sheets, input sheets, calculation sheets, and output sheets.
The Financial model contains 15 worksheets that are dynamically linked.
1. Guide: Contains the color codes used in the model, model structure, and macros used in the model are listed in this worksheet. Key assumptions and results are also extracted here in the form of tables and can be used as the databook and aim to facilitate the extraction of financial model assumptions and results to be used in project documents.
2. Tracker: Aims to keep a track of the changes through multiple versions
3. Q&A: To keep track of questions and answers on the financial model
4. Inputs: Contains the model inputs structure in the form of scenario analysis.
5. Sens: Contains sensitivity inputs and outputs
6. Time: Calculation of the different timing flags and counters, used as time reference throughout the model.
7. CapEx: Calculation of construction cost breakdown
8. Financing: Includes:
– Calculation of sources and uses of funds during the construction period.
– Calculation of disbursement profile, interest, and fees during construction
– Debt drawdown and repayment profiles
9. Rev & Opex: Includes:
– Revenues of the project
– Opex calculation
– Account receivables
– Account Payables
9. Tax: Includes calculation of:
– Corporate Income tax payment
10. Return and Ratios: Calculation of debt and equity ratios, including the debt service coverage ratio (DSCR), loan life coverage ratio (LLCR) average loan life, debt returns, the weighted average cost of capital (WACC) and equity IRR
11. IFS: Cashflow, balance sheet, and income statement on a periodic basis using time inputs from the “Inputs” sheet.
12. Checks: contains a model error and integrity checks
13. Summary: Summary key inputs & Outputs like Summary Sources and Uses of Funds Cover ratios, average loan life, and Shareholder return
14. AFS: Cashflow, balance sheet, and income statement on an annual basis
The Model assumptions are in a dedicated sheet labeled “Inputs” Input Sheets. The layout of the “Inputs” sheet is designed in such a way to enable the user to run multiple scenarios. To calculate the Model, you should press the button: Run Macro. This should be done each time an assumption is changed. You can find the “Run Macro” button on top of each worksheet and also on top of the summary sheet.
Model Package includes:
1. Excel-based financial model – File Types: .pdf Adobe Acrobat Reader and .xlsb (Excel Binary Spreadsheet) MS Excel
2. Macro Word Document – This model comes with Macros and you need to enable them so that you can make the best use of it.