Date(s) - 08/04/2019 - 12/04/2019( 8:00 am - 1:00 pm )
Location: Malaysia, Kuala Lumpur
We have been conducting these five workshop modules entitled “(Project) Financial Modelling for Engineers and Accountants Made Easy” targeting Government Linked Companies (GLCs), Public Listed Companies (PLCs), Small and Medium Enterprises (SMEs) and government agencies. These modules have been well received and quite well known in the Malaysian and Regional market.
Engineering Finance is defined as Engineering using financial methodology to create “”Cost Efficient” project designs thus enhancing the return on investment. Thus, Engineering Finance methodology is about Projects Financial Modelling. Financial Engineering, on the other hand, evolves from Corporate Finance. This Engineering Finance methodology has been successfully applied to few projects in Malaysia, India, Indonesia and Australia that have shown vast improvements in its profitability enhancing its IRRs, shortening its payback period, improving its cash flow etc. thus, enhancing Wealth.
The Engineering Finance methodology have two tools:
Tool no 1: MAL Cost Efficiency Model. This tool is used in the (re)structuring of project and to generate options to Optimise/enhance return on investments. It makes the projects more Cost Efficient.
Tool no 2: Techno-Financial Model. This is the financial modelling part used to determine the Project IRR, ROI, payback period, IDC, Wcap etc. it is to ensure long-term sustainability.
These workshops are particularly useful and beneficial to Banks, Property Development companies, Mining companies, Toll Road Developers, Power Plant developers etc. This knowledge will indeed reduce the financial risk in project development as well as enhancing return of the project.
Uses and Applications of The Engineering Finance Methodology
There are many uses of this methodology, inter alia:
- Structuring the Financial Viability of proposed projects to enhance the return on investment (Project IRR, Equity IRR, ROE, ROI, payback period etc). These dynamic financial models can also be used for sensitivity analysis or stress test to ensure long-term sustainability.
- Strategic planning – building financial models to evaluate capital expenditures on proposed expansion/diversifications.
- Structuring the “Debt and Equity Structure” of Project Loans – minimising financial cost thus enhancing the return on investment.
- Capital Budgeting – Generation of options to enhance and justify alternative capital investment proposals etc.
- Annual and 5-year Budget Planning – ensuring long-term sustainability during Operation & Management.
- Performance Analysis of Companies – to ensure competitiveness.
- Merger & Acquisition analysis – Valuation of enterprises, structuring the M&A deal and justifying the acquisition cost.
- Structuring of Private Financing Initiatives (PFI) proposals to justify request for concession period, tariff etc (for Toll Highway, IPPs etc)
- Negotiating tools with multi-parties in project implementation.
The aim of the workshops, using the Engineering Finance methodology, to (re)structure projects and generate options that will optimise the return on investments. In this effort, the Engineering Finance methodology’s 1st tool i.e. the MAL Cost Efficiency Model is used to determine the Technology-Product options and project locations to enhance Cost Efficiency (of projects). This methodology can also be used in project planning, control of construction cost, O&M etc.
The Techno-Financial Model is the 2nd tool of the Engineering Finance methodology and is used to determine the financial viability (Projects IRR, Equity IRR, ROE, ROI, payback period, NPV, NPV yield. The strength of these workshops is the topic on how to compute the Working Capital and Interest During Construction (IDC). We believe, in this country, we are one of the few consultants who can do that. This is a critical factor to ensure smooth cash flow during projects implementation.
Engineering Finance Modular Workshops
The modules on offer are as follows:
- Module 1: (1D) Seminar on the Engineering Finance methodology. This module covers only the seminar part i.e. without the computing. The minimum and maximum number of participants is 50 and unlimited per class respectively.
- Module 2: (3D) Financial Model for Engineers and Accountants using the Engineering Finance methodology and Techno-Financial Model (general). This is a hands-on workshop for Senior Staff. The minimum and maximum number of participants is 10 and 20 per class respectively.
In essence, the Engineering Finance workshops will create cost-conscious generation of professionals to face up to the globalization and borderless phenomenon. In fact, these workshops advocate the creation of “Global Professional Technopreneurs”.
We have authored two books
For Seminar: Book #1: (2012, hardcopy only) “(Project) Financial Modelling for Engineers and Accountants Made Easy and
For Workshops: Book #2: (NEW 2018, Softcopy ; hardcopy ) Engineering Financial and Techno-Financial Model for Engineers and Accountants Made Easy
- Case Studies
- Group Discussions
- Group & Individual exercise
- Intensive Workshop by using templates, Diagrams & Charts
- Planning Activities
- Self Assessments
- Combine case studies, and analysis of real world examples
- Action plan