Once the project is into operation it most probably generates money to be able to make payments in the form of principal repayments and interests to the lenders and dividends to the sponsors. Financial experts who sketch the project finance models are expected to foresee the project developments in all these respects by analyzing the project in the perspective of share holders. The pay off for a share holder happens in two stages viz. one is during the equity payments in the initial phase and other during the dividend payments in the operational phase of the project. Besides a financial modelist must also keep in mind other factors that could affect the cash flow in project finance that include, project risks, tax considerations, expected rates of inflation and disposal values. Determining the life cycle of the project is also prudent based on the market analysis in line with the project profile and the competition that lies therein.
Always have options for the execution of your project deal, options that can adjust well with unexpected changes. These options help you create opportunities in multiple scenarios for the successful continuation of your project thus creating value within the project no matter what circumstance you face. These options can feature the timing of the project, the abandoning of the project if need be or sustaining the project for a delayed growth that is fool proof. You cannot really do all this on your own. Essential contribution of a financial expert to chalk out the blueprint for the project finance should be your top priority. Banking services give you a lot of option; you also have outside sources for the same. Get your research done thoroughly before you step into any kind of investment banking.