Task 7.
Preparation of preliminary financing models
7.1
7.2
7.3
7.4
Since
The examination of the capital costs and revenue stream of
the project and investigation of the market along the
above lines will be directed in the first instance to
achieving "pro forma" finance models each with a
characteristic profile of drawing and repayment.
the debt service requirements of each model will depend
upon anticipated prevailing interest rates, consultants.
will assume a range of rate variations with which to test
the project's cash flow.
At the same time consultants will develop an equity model,
and will discuss with Government the operating structure
for the Airport and the minimum level of Government's
participation necessary to attract outside finance.
The above process will be advanced to the stage where a
number of alternative possible models has been produced
each showing a different "mix" of debt and equity and each
potentially capable of encompassing the capital costs.
The alternative finance and equity models will be
expressed in the form of schedules of loan drawings,
phased equity injections and loan repayments covering, on
a year-on-year basis, the full construction period and
anticipated loan amortisation term. Pro forma financial
statements in the form of balance sheets, income
statements and cash flows for each alternative will be
prepared and, at this stage (as described under Task 4
above) a full and detailed sensitivity analysis will be
conducted which will reflect all the basic assumptions in
respect of variables which have been identified during the
consultancy to date.
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