Economic Evaluation of Contracts

Economic Evaluation of Contracts

The results of economic evaluations of potential projects are the primary source that are used by executives to make investment decisions and negotiate contracts. The economic evaluation process is usually the final step in a long process of technical and financial evaluation that must be done before any investment decision is made. Enrisk provides consultancy services in economic evaluations and contracts. Our clients include international corporations, national companies, governments, regulatory agencies, financial institutions and banks.

Enrisk will help your organization in revision and drafting of legislation, regulations and contracts, selection of fiscal and economic packages, negotiation, implementation and follow-up of contracts. We have a tremendous ability to model the economic and fiscal terms of any type of contract by incorporating specific provisions.

As the initial step of an economic evaluation, Enrisk, in collaboration with subject matter experts, help develop reports of expected capital expenditure and required operating expenses projection. As the second step, Enrisk models the fiscal system of the host country based on the type of the contract. A model will be constructed that will ultimately calculate the annual after-tax cash flow that the corporation will receive over the life of the project.

As the final step in the economic evaluation process, EnRisk summarize the future cash flow projections from the second step into various economic indicators that will allow corporations to make a decision on whether to proceed with the project or not.