Financial Model

Use this chapter to explain the financial model, core assumptions, funding need, revenue or sustainability logic, and model review status. Keep the workbook in data/financial-model.xlsx.

Model Conventions

Convention	Sponsor Input
Model file	data/financial-model.xlsx
Reporting currency	REPLACE: Currency code and whether values are nominal or real
Unit scale	REPLACE: Full currency units, thousands, or millions
Forecast period	REPLACE: Years or months covered
Price basis	REPLACE: Base year, escalation approach, taxes, duties, FX assumptions
Scenario used for Project Information Model	REPLACE: Base, downside, upside, grant case, tariff case, or other
Latest model review	REPLACE: Reviewer, date, and status

Key Assumptions

Assumption	Base Case	Downside or Sensitivity	Source	Model Location
Capital expenditure	REPLACE: Amount	REPLACE: Amount	REPLACE: Cost estimate, quote, benchmark	Assumptions tab
Revenue, tariff, or funding inflow	REPLACE: Amount or rate	REPLACE: Amount or rate	REPLACE: Offtake, tariff, budget, grant agreement	Revenue tab
Operating expense	REPLACE: Amount or unit cost	REPLACE: Amount or unit cost	REPLACE: O&M estimate, quote, benchmark	Opex tab
Inflation or escalation	REPLACE: Rate	REPLACE: Rate	REPLACE: Macro source or sponsor policy	Assumptions tab
Discount rate or hurdle rate	REPLACE: Rate	REPLACE: Rate	REPLACE: Sponsor policy or financing terms	Ratios tab

Funding Plan

Funding Source	Instrument	Amount	Status	Evidence
REPLACE: Sponsor equity, grant, debt, concessional finance, public budget, or other	REPLACE: Instrument	REPLACE: Amount and currency	REPLACE: Proposed, committed, approved, disbursed	REPLACE: Term sheet, agreement, approval
REPLACE: Source	REPLACE: Instrument	REPLACE: Amount and currency	REPLACE: Status	REPLACE: Evidence

Financial Outputs

Output	Base Case	Threshold or Requirement	Notes
Total project cost	REPLACE: Amount	REPLACE: Approved budget or funding envelope	REPLACE: Notes
Annual steady-state revenue or funding	REPLACE: Amount	REPLACE: Minimum required	REPLACE: Notes
Annual steady-state operating cost	REPLACE: Amount	REPLACE: Budget or benchmark	REPLACE: Notes
Net present value or funding gap	REPLACE: Amount	REPLACE: Sponsor threshold	REPLACE: Notes
Debt service or coverage ratio if applicable	REPLACE: Ratio	REPLACE: Lender threshold	REPLACE: Notes

Model Governance

Control	Expected Practice	Status
Version control	Store the active model at data/financial-model.xlsx and archive dated versions under appendices/financial-model/ if needed.	REPLACE: Status
Assumption traceability	Record all major assumptions in appendices/assumptions-register.md.	REPLACE: Status
Formula review	Check formulas, units, signs, and links before decision gates.	REPLACE: Status
Sensitivity review	Test key risks from data/risk-register.csv.	REPLACE: Status

Evidence Prompts

Prompt	Expected Evidence	Owner	Status
Confirm capex ties to scope and engineering quantities.	Cost estimate, bill of quantities, quotes, benchmark, or engineer review.	REPLACE: Owner	REPLACE: Status
Confirm revenue, tariff, grant, budget, or offtake assumptions are documented.	Contract, tariff order, budget letter, demand model, or offtake evidence.	REPLACE: Owner	REPLACE: Status
Confirm model review has been completed before investment approval.	Review checklist, finance sign-off, or independent model audit note.	REPLACE: Owner	REPLACE: Status