Читать книгу See-Through Modelling - Dominic Robertson - Страница 19

UK PFI is part of project finance. In PFI, as in all project finance, the cash flow waterfall constrains and directs all the cash movements such as payments to suppliers, tax payments, bank debt service, funding of cash reserves and finally the rewarding of shareholders and investors.

From conversations with project developers, bankers and investors it is clear that project finance is all about cash. Above all, everybody involved is asking the question: “How much cash is there?” This is the important question because if properly understood by the company directors and modellers the benefits are enormous.

PFI has made me appreciate the importance of dealing with cash, from the working capital assumptions to the cash flow waterfall. PFI requires an organised cash-centric modelling solution with no duplication. All companies would do well to do the same – even though they may report along more accounting lines.