All project costs over the project's entire period shall be anticipated, but these costs occur at different times. Thus, the project's cash flows (inflows and outflows) shall be reduced based on the present value. The net present value of the cash flows shall be calculated based on the above mentioned costs. It is necessary to consult the Technical Bureau or any other financial consulting firms at this phase to develop this model if the Federal Entity does not have such expertise.
An example of base public sector Comparator Model is shown in the table below:
Year | Capital Cost | Maintenance Cost | Operational costs | Indirect costs | Revenue | Total | Discount factor | Reduced flows |
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Total |
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Development of public sector Comparator Model modified to contain risks
This section outlines the public sector Comparator Model modified to contain risks. This model shall be calculated to contain such risks that are often overlooked by traditional methods in the public project implementation. This method is equal to the base public sector Comparator Model in addition to the risks costs. The risks and costs thereof shall be obtained from the risk assessment model.
An example of public sector Comparator Model modified to contain risks is shown in the table below
Year | Capital Costs | Maintenance Costs | Operational Costs | Indirect Costs | Revenues | Modification for risks | Total | Discount factor | Reduced flows |
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Total |
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