Introduction
Before making important project investment decisions it is key to properly estimate the potential value of a project and quantify its risks using Project Economics. Therefore a project economist should be able to make a financial model with the right level of detail bearing in mind the intended core decisions.
After that a good presentation of the analysis allows the management / Board of Directors to efficiently make a well-informed decision. This course is based on working practice and will give the student the most important knowledge and skills to start working as a project economist.
Purpose
At the end of this course the participants will be able to independently calculate the economic feasibility of projects and to subsequently present this to allow a well informed decision. Students will also gain practical knowledge and skills that have proven their usefulness in business. In addition, the perspective of governments on decision making is covered.
Set-up
In order to transfer knowledge dynamically and interactively, real life case studies will be used. Furthermore, there will be both quizzes and polls. In other words: this course stimulates and expects active participation.
Project Economics is a 3-day course, however it is also possible to select just one or two days. In that case, the knowledge of previous days is assumed to be known.
Content of Project Economics
- Day 1: Project Valuation – Basics
- Time value of money: inflation and discounting
- Cost estimation: how to get good cost estimates
- Tax calculations: what options are available and how to apply them
- Modeling basics: how to set up a model that is properly auditable
- Decision criteria: NPV, IRR, Payback Period, etc.
- Day 2: Project Risk & Uncertainty / Sensitivities
- Which risks to model regarding a single decision
- Model and present sensitivity analyses based on these risks
- Incremental decisions: interaction with existing projects
- Valuation of pre-investments with uncertain outcomes
- When / how to use probabilistic analysis
- Day 3: Presenting Economics / Investment Decision Making
- Examples of standard evaluation methodologies
- Analyses to support key decisions
- Financing effect on decision criteria
- Presenting different types of decisions effectively
- Investments to increase sales volumes
- Infrastructure investments
Target audience
The course is specifically created for managers and professionals responsible for the process of investment decisions. For example: project managers, project engineers, project economists, consultants en project finance staff members.
Requirements
- Laptop with Excel and Powerpoint.
- A basic knowledge of financial / economic terminology.
- Level is post academic.
In-company training
SPBI can also realise Project Economics at your company, furthermore there is the possibility to adjust the course to your specific needs. For more information, you can contact both Tridata and SPBI.
Dates for 2024 – Project Economics
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| February 14-16 March 20-22 April 17-19 June 05-07 September 18-20 October 16-18 November 20-22 |
Costs
The costs per person are €750 per day or € 2,000 Euro for the full course.
This price excludes 21% VAT and includes course material and a participant certificate as well as coffee/tea and a luxury lunch.
Location
The Hague, Utrecht or virtual.
The Lecturers
Raoul Scheepmaker and Hein Dungelmann. See About Us.