Financial Modelling for Project Finance: Pre-financial close cashflow modelling in Excel (Lac Finance Texts)

As a hopeful analyst for a project finance-oriented development firm, I've glanced, skimmed and read multiple books supposedly teaching you how to build financial models. Modelling project finance is not easy task, nor is it one that is easily taught. While there are numerous, excellent texts that teach the reader how to build corporate finance models, project finance is a totally different story. Of the PF offerings out there, most are conceptual. Conceptual is good - to a point. Lynch's Financial Modelling for Project Finance was passed into my hands by a friend, and it is far and away the most organized, concise and reference-able text I've come across. There is absolutely no fluff throughout the entire workbook, but this doesn't necessarily make it dry. Lynch does an excellent job of telling you what you need to do, why you need to do it, and to implement it in the model. One of the most valuable takeaway's I've had so far has been the continual emphasis on how to create timelines and counters in the "work" worksheet, which allow accurately timed calculations for every other aspect of the model (Capex, Financing, Ops, etc). Along with the workbook, the purchaser gains access to a set of spreadsheets that range from fully built models to various exercises in constructing or solving them in order to hone your skills. These models and exercises revolve around one specific case study: a water treatment project. While this may not be specifically the industry you'd plan to work in, the case study is sufficiently complex enough to illustrate any and all conventions required to build out a project finance model in other industries. The best part about the case study is that it actually puts you in the role of the financial analyst. The first exercise gives you notes of a meeting about the project that your firm receives an invitation to bid for. It grants the analyst limited information and requires you to build a base analysis around limited information. The exercises get subsequently more complex, and by the time I was finished with them, I felt beyond prepared to apply what I'd learned to any other project-finance oriented solution. A last point, the organization of this book truly shines. Every section is referenced, every chapter that might require background from another chapter is referenced, you know exactly where to find things when you need to find them. The price tag on this book is hefty, and I didn't have to pay it. With that said, I plan to once I land a job using the skills I've developed from this book - its worth every penny. Lastly, it might be noted that I emailed the author with various questions, and woke to them answered in full the next morning, with the generous offer to answer any further questions that may arise in my practice and studying.

One of the best Modeling books. The author sent the spreadsheets even before the book arrived.

This is an incredible book, one which is so practical in every way. I couldn’t recommend this anymore and will be using the activities for my own processes in the coming months.

I paid a bit more than the lowest price Amazon offered because I needed a faster delivery date. As always, Amazon took great care of the product—super fast delivery, on time or even earlier. I purchased this book after completing an online Project Finance course that used Principles of Project Finance by E. R. Yescombe as a course book. I wanted to take the next step, especially to learn how to build a financial model myself, because neither the course nor the Yescombe book covered this topic in detail. Fortunately, Chapter 13 of Yescombe’s book includes the following footnote: >> This chapter does not pretend to turn the reader into an expert financial modeler, but is just aimed at setting out the key aspects of modeling that are relevant for parties involved in a project. Penelope Lynch, Financial Modelling for Project Finance (Euromoney Institutional Investor, London, 2010 [2nd ed.]) provides detailed guidance After reading this, I looked through the Amazon reviews for Lynch’s book and contacted the author directly to confirm whether she still provides the Excel files used in the book, since one reviewer mentioned they were missing. As a self learner, having access to the files was essential. The author replied very quickly and provided the files after I showed proof of purchase. She was also happy to answer questions about the book’s content, which was fantastic news for a reader like me. When the book arrived, I realized it was the third edition printed in 2016. In my case, it was printed in Germany but still shipped from the UK, which felt a bit unusual. The example files are still based on Excel 2003 and 2007, which are outdated as of 2026, but the files still work, and the author continues to support them—another big advantage for learners. Now I’ve started reading and applying what I learned from my previous project finance studies. Excited to begin!

There are no excel files , with the book ... its fraudlent