Cost estimates and financial modeling of investment projects

Development of an unbiased and economically viable financial model is necessary to attract funds for the investment project. The model can be based as well on all previous pre-design stages – technical concept, feasibility study, etc. Financial model development is essential for the projects in power sector as well as for the projects in other sectors. However, to develop a financial model of the power facility, not only perfect understanding of functioning mechanisms of power markets but also professional engineering awareness is needed.

Financial models developed by the company EF-TEK meet all generally acknowledged  requirements to similar documents, particularly, “Guidelines for efficiency estimate of investment projects” (approved by the Ministry of Economy of the Russian Federation, by the Ministry of Finance of the Russian Federation and Gosstroy of the Russian Federation as of June 21, 1999 #.VK 477). We take into account the most actual assessment of price changing for fuel, goods and services of natural monopolies and national measures. ‘Energy Invest’ software specially developed to analyze investment projects’ efficiency related to power sector is used in work.

Capital costs estimate within investment projects is carried out in the form of summary cost estimate (so-called SSR) accepted in Russia (consists of 12 chapters). Among information sources are technical and commercial proposals of the suppliers of equipment, works and services, as well as consolidated price sheets and similar projects’ data from the large EF-TEK database.

Operating costs estimate is done with regard to the results of the facility predesign based on similar projects’ data.