Table 4.50 Financial return on private equity (thousands <strong>of</strong> Euros)1 2 3 4 5 6 7 8 9 10 11 12 13 14 15Total municipal services income 0 0 0 10,096 14,662 14,904 15,150 15,401 15,655 15,914 16,177 16,444 16,716 16,992 17,273Industrial and irrigation water supply0 0 0 4,546 6,573 6,653 6,733 6,815 6,898 6,981 7,066 7,152 7,239 7,326 7,415revenueSALES 0 0 0 14,642 21,235 21,557 21,884 22,216 22,553 22,895 23,243 23,596 23,954 24,318 24,688RESIDUAL VALUE 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0TOTAL REVENUES 0 0 0 14,642 21,235 21,557 21,884 22,216 22,553 22,895 23,243 23,596 23,954 24,318 24,688Labour cost 0 0 0 1,494 1,523 1,553 1,583 1,614 1,645 1,677 1,710 1,743 1,777 1,811 1,847Electrical energy 0 0 0 129 188 193 198 203 208 213 218 224 229 235 241Materials (Chemicals, reagents, inert,etc.)0 0 0 2,422 3,525 3,590 3,657 3,725 3,794 3,864 3,936 4,009 4,083 4,159 4,236Intermediate services and goods 0 0 0 3,969 5,762 5,855 5,949 6,045 6,143 6,242 6,343 6,446 6,550 6,656 6,763Maintenance 0 0 0 531 770 782 794 805 818 830 842 855 868 881 894Elimination <strong>of</strong> treatment sludge 0 0 0 2,835 4,137 4,226 4,318 4,411 4,506 4,604 4,703 4,805 4,908 5,015 5,123Service fee (PPP) 0 0 0 601 872 887 902 916 932 947 963 978 995 1,011 1,028TOTAL OPERATING <strong>COST</strong>S 0 0 0 11,980 16,777 17,085 17,399 17,719 18,045 18,377 18,715 19,059 19,410 19,767 20,131Bonds and other financial resources 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0EIB loans 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Other loans 0 0 0 1,232 1,232 1,112 988 865 741 618 494 371 247 124 0INTEREST 0 0 0 1,232 1,232 1,112 988 865 741 618 494 371 247 124 0Bonds and other financial resources 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0EIB loans 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Other loans 0 0 0 0 2,470 2,470 2,470 2,470 2,470 2,470 2,470 2,470 2,470 2,470 0LOANS REIMBOURSEMENT 0 0 0 0 2,470 2,470 2,470 2,470 2,470 2,470 2,470 2,470 2,470 2,470 0PRIVATE EQUITY 3,018 11,275 10,412 0 0 0 0 0 0 0 0 0 0 0 0National contributionMunicipal contributionTOTAL NATIONAL PUBLICCONTRIBUTION0 0 0 0 0 0 0 0 0 0 0 0 0 0 0TOTAL EXPENDITURES 3,018 11,275 10,412 13,212 20,479 20,667 20,857 21,054 21,256 21,464 21,679 21,899 22,127 22,361 20,131NET CASH FLOW -3,018 -11,275 -10,412 1,430 755 889 1,026 1,162 1,297 1,431 1,564 1,696 1,827 1,957 4,55716 17 18 19 20 21 22 23 24 25 26 27 28 29 30Total municipal services income 17,558 17,848 18,143 18,443 18,747 19,057 19,372 19,692 20,017 20,348 20,684 21,026 21,374 21,727 22,086Industrial and irrigation water supply7,505 7,596 7,688 7,782 7,876 7,971 8,068 8,166 8,265 8,365 8,466 8,568 8,672 8,777 8,883revenueSALES 25,063 25,444 25,831 26,224 26,623 27,028 27,440 27,858 28,282 28,713 29,150 29,595 30,046 30,504 30,969RESIDUAL VALUE 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6,030TOTAL REVENUES 25,063 25,444 25,831 26,224 26,623 27,028 27,440 27,858 28,282 28,713 29,150 29,595 30,046 30,504 36,999Labour cost 1,883 1,919 1,957 1,995 2,033 2,073 2,113 2,154 2,196 2,239 2,283 2,327 2,372 2,419 2,466Electrical energy 247 253 259 266 272 279 286 293 301 308 316 324 332 340 349Materials (Chemicals, reagents, inert,etc.)4,315 4,395 4,477 4,560 4,644 4,730 4,818 4,908 4,999 5,091 5,186 5,282 5,380 5,480 5,582Intermediate services and goods 6,872 6,983 7,096 7,211 7,327 7,446 7,566 7,688 7,813 7,939 8,067 8,198 8,330 8,465 8,601Maintenance 907 921 935 949 963 977 992 1,007 1,022 1,037 1,053 1,069 1,085 1,101 1,118Elimination <strong>of</strong> treatment sludge 5,234 5,347 5,462 5,580 5,701 5,824 5,950 6,078 6,210 6,344 6,481 6,621 6,764 6,910 7,059Service fee (PPP) 1,045 1,062 1,080 1,097 1,116 1,134 1,153 1,172 1,191 1,211 1,231 1,251 1,272 1,293 1,314TOTAL OPERATING <strong>COST</strong>S 20,502 20,880 21,265 21,657 22,056 22,463 22,878 23,300 23,731 24,169 24,616 25,071 25,535 26,007 26,488Bonds and other financial resources 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0EIB loans 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Other loans 0 0 0 0 0 566 510 453 396 340 283 226 170 113 56INTEREST 0 0 0 0 0 566 510 453 396 340 283 226 170 113 56Bonds and other financial resources 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0EIB loans 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Other loans 0 0 0 0 0 1,133 1,133 1,133 1,133 1,133 1,133 1,133 1,133 1,133 1,133LOANS REIMBOURSEMENT 0 0 0 0 0 1,133 1,133 1,133 1,133 1,133 1,133 1,133 1,133 1,133 1,133PRIVATE EQUITY 0 0 0 0 11,326 0 0 0 0 0 0 0 0 0 0National contributionMunicipal contributionTOTAL NATIONAL PUBLICCONTRIBUTION0 0 0 0 0 0 0 0 0 0 0 0 0 0 0TOTAL EXPENDITURES 20,502 20,880 21,265 21,657 33,382 24,163 24,521 24,886 25,260 25,642 26,032 26,430 26,837 27,253 27,677NET CASH FLOW 4,561 4,564 4,566 4,567 -6,759 2,866 2,919 2,971 3,022 3,070 3,118 3,165 3,208 3,251 9,322Discount Rate 5.0%FNPV(Kp) 5,139.5FRR(Kp) 6.5%182
Table 4.51 Financial sustainability (thousands <strong>of</strong> Euros)1 2 3 4 5 6 7 8 9 10 11 12 13 14 15PRIVATE EQUITY 3,018 11,275 10,412 0 0 0 0 0 0 0 0 0 0 0 0National contribution 1,258 10,164 7,607 0 0 0 0 0 0 0 0 0 0 0 0Municipal contribution 1,700 4,495 4,068 0 0 0 0 0 0 0 0 0 0 0 0TOTAL NATIONAL PUBLIC CONTRIBUTION 2,958 14,659 11,675 0 0 0 0 0 0 0 0 0 0 0 0EU GRANT 4,410 10,595 7,124 0 0 0 0 0 0 0 0 0 0 0 0LOANS 3,018 11,275 10,412 0 0 0 0 0 0 0 0 0 0 0 0TOTAL FINANCIAL RESOURCES 13,404 47,804 39,623 0 0 0 0 0 0 0 0 0 0 0 0Total municipal services income 0 0 0 10,096 14,662 14,904 15,150 15,401 15,655 15,914 16,177 16,444 16,716 16,992 17,273Industrial and irrigation water supply revenue 0 0 0 4,546 6,573 6,653 6,733 6,815 6,898 6,981 7,066 7,152 7,239 7,326 7,415SALES 0 0 0 14,642 21,235 21,557 21,884 22,216 22,553 22,895 23,243 23,596 23,954 24,318 24,688TOTAL INFLOWS 13,404 47,804 39,623 14,642 21,235 21,557 21,884 22,216 22,553 22,895 23,243 23,596 23,954 24,318 24,688Labour cost 0 0 0 1,494 1,523 1,553 1,583 1,614 1,645 1,677 1,710 1,743 1,777 1,811 1,847Electrical energy 0 0 0 129 188 193 198 203 208 213 218 224 229 235 241Materials (Chemicals, reagents, inert, etc.) 0 0 0 2,422 3,525 3,590 3,657 3,725 3,794 3,864 3,936 4,009 4,083 4,159 4,236Intermediate services and goods 0 0 0 3,969 5,762 5,855 5,949 6,045 6,143 6,242 6,343 6,446 6,550 6,656 6,763Maintenance 0 0 0 531 770 782 794 805 818 830 842 855 868 881 894Elimination <strong>of</strong> treatment sludge 0 0 0 2,835 4,137 4,226 4,318 4,411 4,506 4,604 4,703 4,805 4,908 5,015 5,123TOTAL OPERATING <strong>COST</strong>S 0 0 0 11,380 15,905 16,199 16,498 16,803 17,113 17,430 17,752 18,080 18,415 18,756 19,104Feasibility study, work management, etc. 7,363 0 1,896 0 0 0 0 0 0 0 0 0 0 0 0Land expropriation 726 368 0 0 0 0 0 0 0 0 0 0 0 0 0Labour 4,255 25,915 13,152 0 0 0 0 0 0 0 0 0 0 0 0Materials for civil works 990 7,031 4,078 0 0 0 0 0 0 0 0 0 0 0 0Rentals 26 1,607 1,604 0 0 0 0 0 0 0 0 0 0 0 0Transports 44 1,331 1,306 0 0 0 0 0 0 0 0 0 0 0 0Electro-mechanical components and equipment 0 11,551 17,587 0 0 0 0 0 0 0 0 0 0 0 0Investments costs 13,404 47,804 39,623 0 0 0 0 0 0 0 0 0 0 0 0Replacement costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Residual valueOther <strong>investment</strong> items 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0TOTAL INVESTMENT <strong>COST</strong>S 13,404 47,804 39,623 0 0 0 0 0 0 0 0 0 0 0 0Bonds and other financial resources 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0EIB loans 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Other loans 0 0 0 1,232 1,232 1,112 988 865 741 618 494 371 247 124 0INTEREST 0 0 0 1,232 1,232 1,112 988 865 741 618 494 371 247 124 0Bonds and other financial resources 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0EIB loans 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Other loans 0 0 0 0 2,470 2,470 2,470 2,470 2,470 2,470 2,470 2,470 2,470 2,470 0LOANS REIMBOURSEMENT 0 0 0 0 2,470 2,470 2,470 2,470 2,470 2,470 2,470 2,470 2,470 2,470 0PROFIT TAXATION 0 0 0 1,171 1,699 1,725 1,751 1,777 1,804 1,832 1,859 1,888 1,916 1,945 1,975TOTAL OUTFOLWS 13,404 47,804 39,623 13,783 21,306 21,505 21,706 21,915 22,129 22,349 22,576 22,809 23,049 23,295 21,079NET CASH FLOW 0 0 0 859 -71 52 177 301 424 546 667 787 905 1,023 3,609CUMULATED TOTAL CASH FLOW 0 0 0 859 788 839 1,017 1,318 1,742 2,288 2,955 3,742 4,647 5,670 9,279>>> continues183
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ACRONYMS AND ABBREVIATIONSBAUB/CCBA
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TABLESTable 2.1 Financial analysis
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FIGURESFigure 1.1 Project cost spre
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Cohesion Fund, and through the leve
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or the plant will not reveal excess
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CHAPTER ONEPROJECT APPRAISAL IN THE
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Some specifications for financial t
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FOCUS: INFORMATION REQUIREDGeneral
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In particular, CBA results should p
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CHAPTER TWOAN AGENDA FOR THE PROJEC
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objectives, are, as far as possible
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considered the appropriate shadow p
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2.3.2 Feasibility analysisFeasibili
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This approach will be presented in
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Current assets include:- receivable
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The following items are usually not
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Mainly, the examiner uses the FRR(C
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The dynamics of the incoming flows
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eturn on their own capital (Kp). Th
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While the approach presented in thi
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2.5.1 Conversion of market to accou
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Table 2.9 Electricity price dispers
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2.5.1.2 Fiscal correctionsSome item
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previously estimated in projects wi
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FOCUS: ENPV VS. FNPVThe difference
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2.6 Risk assessmentProject appraisa
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Table 2.14 Impact analysis of criti
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Figure 2.6 Probability distribution
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eneficiary. The project proposer sh
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There are many ways to design an MC
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PROJECT APPRAISAL CHECK-LISTCONTEXT
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- reduction of congestion by elimin
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- the methods applied to estimate e
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- the marginal external costs: cong
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- the benefits for the existing tra
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The following tables show some refe
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3.1.1.6 Risk assessmentDue to their
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As shown in Figure 3.1, only under
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3.1.3.7 Other project evaluation ap
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- Waste Management Hierarchy rules
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The time horizon for a project anal
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3.2.1.7 Other project evaluation ap
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every user support the total costs
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Territorial reference frameworkIf t
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Cycle and phases of the projectGrea
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One of the most important aims of t
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projects, as in other sectors in wh
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3.2.3.2 Project identificationBasic
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3.2.3.7 Other project evaluation ap
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In order to evaluate the overall im
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for regassification plants, number
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Examples of objectives are:- change
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decontamination if any;- the techni
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3.3.3.6 Risk AnalysisCritical facto
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3.3.4.6 Risk assessmentCritical fac
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3.4.1.5 Economic analysisThe follow
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Financial inflows• Admission fees
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expectancy suitably adjusted by the
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The time horizon for project analys
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A Cost-Benefit Analysis should cons
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CHAPTER FOURCASE STUDIESOverviewThi
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adjustments for Competitive Neutral
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ANNEX HRISK ASSESSMENTIn ex-ante pr
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Reference ForecastingThe question o
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Figure H.5 Levels of risks in diffe
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ANNEX IDETERMINATION OF THE EU GRAN
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A.4. Technological Alternatives and
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GLOSSARYAccounting period: the inte
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Market price: the price at which a
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BIBLIOGRAPHY1. ReferencesBelli, P.,
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Ray, A. 1984, Cost-benefit analysis
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EnvironmentGeneralAtkinson, G., 200
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European Commission, DG Tren, 2003,