§12.10 THE BASE CASE AND CHANGES
IN ASSUMPTIONS
Once the lenders and Sponsors agree that the financial model’s structure and cal-
culation formulae reflect the project and its contracts correctly, the basic input as-
sumptions are settled, and the financial structure and terms (cf. Chapter 13) are
agreed to and also incorporated in the model, the final run of the model on this ba-
sis is known as the “Base Case” or “banking case.” This final calculation usually
takes place just before signing or Financial Close, to enable the lenders to check
that, using fully up-to-date assumptions and the final versions of the Project Con-
tracts, the project still provides them with adequate coverage for their loan.
But the project does not stand still thereafter, and ...