The following three main categories of parties may be interested in having a portfolio of projects.
- Owners who have a number of projects in different countries and different industries and wish to see the sum of the cash flows for their share
- Lenders who are lending to a variety of different industries and in different countries and wish to see their share of the loan cash flows
- Government agencies who are engaging third party contractors in PPP contracts inevitably in a single country and often in a single industry (eg transport)
The Enterprise version of Promoter has such a portfolio. It records
- a summary sheet with the key figures for the investor, lender and government split into projects which are in the operating, the construction and the planning phases.
- supporting sheets as follows:
- the file information (name of model file, the version number, the name of the last user and the date when the model was last modified)
- the model basis (the legal framework, the chances of the project proceeding, the expected or actual start date and the current phase of the project) the key results (capital cost, project and equity IRRs and NPVs, loan cover ratios and tax
- the model configuration (number of loans, sinking funds etc)
- the tax payable for each category of tax including any grants and concessions
- the loans amounts and the holdings in bank accounts and sinking funds
- a series of analysis, accounting, fiscal and loan draw down and repayment schedules recording the anticipated periodic cash flows and balances over future periods
Promoter produces the portfolio by opening each model in turn, calculating it in the specified currency (typically in a big organization the models may have been produced in many different currencies), extracting the share of the project or loan as appropriate and summing the figures.
In the case of an investor portfolio the user specifies the name of the investor and Promoter calculates the cash flows for that investor only.
In the case of a lender portfolio, the user specifies the name of the lending agency and Promoter adds the funding cash flows for that lender only.
In the case of a government agency portfolio, the user specifies the name of the country where the project is located and Promoter takes into account projects located in that country only.
It makes a lot of sense for a bank and all its project finance clients to use the same standard model. Having Promoter as such a model
• reduces the overall workload
• speeds up the process of building each model
• ensures a consistent basis for the project and loan analyses
• enables the bank to use a portfolio of projects to analyse their overall loan position