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Economic, Financial and Investment Appraisal.
Capital investment projects may involve anything from minor works to major infrastructure projects. Whatever the size of the project, a key question is whether the it makes economic and financial sense. Opteama has in-depth experience of analysing the economic and financial benefits of transport improvements. We understand the (often differing) concerns of the parties involved, and can assess whether a proposal is justified from each individual point of view.
- Investors (institutional or private) will wish to maximise the return on their investment. Their key concerns will be:
- The robustness of future assumptions concerning customer and revenue growth
- The assessment, quantification and management of all of the possible risks (including construction, technological, planning, revenue, operating, financial, political and legal).
We assess the project and its financial structure in order to satisfy the investor that the risks are properly quantified and are being managed by those parties best able to control them.
- The sponsoring body, which may be part of central government, local authority or private organisation, will want to ensure that the proposal delivers value for money, and that the call on their funds is minimised. They often require a complete cost benefit analysis to be carried out to show the overall benefits of the proposal. Through our knowledge and experience of cost benefit appraisal, the Private Finance Initiative and the likelihood of obtaining government and European funds, we can help the sponsoring body ensure that the project is funded efficiently.
- The future scheme operators (who may also be involved in the design and build) will want it to operate profitably. Concerns will revolve around:
- Maximising revenue
- Minimising operating costs
We have extensive experience of both revenue and operating cost modelling which we can apply to establish the operating cash flows of capital projects.
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