RT Journal Article
SR Electronic
T1 Confessions of a Project Finance Modeler
JF The Journal of Structured Finance
FD Institutional Investor Journals
SP 74
OP 75
DO 10.3905/jsf.2015.21.2.074
VO 21
IS 2
A1 Anastasios Katsikas
YR 2015
UL https://pm-research.com/content/21/2/74.abstract
AB Despite detailed financial modeling by project developers, investors, and lenders, projects seldom work out as planned, leading to questions about the value of modeling. The main uses of a project finance model, however, are not for predicting the future but for identifying the most important risks, for describing in greater detail the project outlined in signed documentation, for monitoring the project throughout its implementation, and for developing early warning signs of trouble and laying out possible solutions. In this case, the author, a lender, finds that the process of building a model to check a project’s viability helps him create and then answer the questions that allow him to understand the risks and various factors that can make or break a project.TOPICS: Project finance, other real assets, legal/regulatory/public policy