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hello everyone kyle here this video is straight from the project finance modeling package it relates to the construction tab and follows after weve calculated the construction cost for wind farm were now trying to figure out how do we fund that cost through debt and equity in this video were actually going to build in those calculations in the wind farm model so lets jump in the second part is to do our sources and uses so sources and users the whole point of sources and users is that they balance the project is not producing revenue so any construction expenditure needs to be met from external funding what are the two broad categories of funding thats right debt and equity now there are three funding structures in terms of the hierarchy of drawdowns firstly all equity is drawn first before debt is drawn secondly equity is drawn down pro rata or parry pursue as debt is drawn and thirdly debt is drawn first equity drawn first is the most common as lenders usually expect equity to
