The financial inputs, outputs, and contractual mechanisms and assumptions are entered into a financial model to forecast results for the length of the concession. Actual cashflows are added as they occur, and sensitivity analysis is performed regularly to track project performance and allow for early recognition of potential problems. The model produces as its output a balance sheet, cashflow statement, and profit and loss statement. It also enables the calculation of all the important variables, including returns to shareholders and debt cover ratios.
