Financial model as management decisions tool in project finance

Financial model is one of the most important tools needed for successful development and implementation of the project. It is used by the project sponsors, bank, other participants of the project finance structuring process. Financial models differ based on industry and specific project cases. The article considers current practices in financial model preparation and review, approaches to models update from the bank side, examples of the most common mistakes. The author shares experience in development of financial modelling unit in the Bank for Development.