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IMPORTANT
BEFORE OPENING THE FINANCIAL MODELS, THE USER MUST VERIFY THAT THE SECURITY LEVEL IN EXCEL IS SET TO MEDIUM (Tools>Macro>Security) IN ORDER TO ACTIVATE MACROS. ON OPENING THE EXCEL FILE, THEN CHOOSE "YES" TO ENABLE MACROS. |
The graphic simulation tool has been developed to familiarize the user with the basics of financial simulations for a highway PPP project. It presents in graphic form the principal financial features of a project company and their sensitivity to a range of key assumptions, through real-time adjustments of the cashflow graphs.
This simplified model has been designed for educational purposes only and is not suitable for project analysis at any level.
The numerical financial model is principally intended as a more advanced educational tool for financial evaluation of PPP projects in order to allow a better understanding of the key parameters affecting the financial viability of a highway project. However, the model allows sufficient range of input data to make it suitable for initial project evaluation at pre-feasibility level.
This financial model provides financial statements by a would-be concessionaire to analyze the construction and operation of a highway concession under a Build-Operate-Transfer (BOT) scheme. The basic data provided with the model has been obtained from real highway concession contracts in Eastern Europe.
It has been developed on a project finance basis, i.e. a non- or limited-recourse financing where lenders rely primarily on the cash flows generated by the project for debt repayment. Revenues are composed of tolls paid by road users and subsidies provided by the Public Authority.
The Assumptions sheet of the model contains all the key parameters and data input entered by the user. The model provides a user-friendly interface where most figures can be adjusted using the scroll bars with a corresponding real-time change in the financial results. Principal data entry ranges and consistency between data are checked by the model in real time, which may trigger comments and warnings for the user. However, the extensive range of possible input combinations prohibits all potential data inconsistencies being shown and the user must remain attentive to data entry values.
The numerical model allows the entry of the following key parameters:
The financial model is not intended to provide project-specific financial modeling. The World Bank absolves itself from any liability, in the event that such models are used and relied upon by third parties in connection with any project or transaction. For such project preparation, public authorities would need to apply the more comprehensive financial models available from specialized audit companies and banks.