So we've done the debt service capacity charge. It's showing us a zero because we've knocked it out using our circular switch. We're ready to move on and take a look. You can see that although these are yellow, which are inviting, they were yellow because we were saying we need to defer them in terms of understanding. They are filling themselves in, but they're worth talking about in terms of source and uses. We need to find the money to pay for IDC because it is a cashflow. It's currently showing a zero. And you can see this is picking up from below and it's picking up a circular switch protected line. So the IDC is not working in this model at the moment because iteration is off because it is circular. Now that brings us to the next area of funding that we've failed to do, which is the debt service reserve account. And the initial part of the model being the construction phase, if there is the need for a debt service reserve account, which there will because it will anticipate next year's debt service, then that money can't come from operations. And so you actually need to borrow to get it.

So we are in a slightly unusual position where we have to borrow to make the lenders happy.

Subsequently we can rely on operations. And so this line here, which is our next gap, it's highly circular and it's highly problematic. And what we've got to do is we've gotta make sure that it only turns up in years one and two.

Okay? In years three onwards. And if we hitch it to the IDC, that will work. Okay? We don't want it there because we'll rely on operations. We would not want to borrow more in year 52 onwards. That would be a very poor model. Then we need it to look at the debt service reserve account and the DSRA is in the debt tab. And you can see we've got the requirement here and I told you I might regret having this as a negative and I do because we've got to do some mental arithmetic kind of acrobatics to get this going now, in our minds. From year zero to year one, nothing's happening because there is no DSRA. However, from year 50 to 51, we're gonna have to build up 5534. Now that means that we have a need for cash in year 51 of 5534. And that will then need to be funded. So back on our source and uses tab, we want that figure, but as a positive, then we subsequently want to ignore figures going forwards. And remember we've got a gap here.

And so I'm already smelling problems and we, so we may find that we have some serious Errors and we wouldn't be surprised if we do.

Okay, let's build up the logic of whether this happens at all.

So we would say if that flag is set to one then and then we would go to the debt tab and just look really carefully at it. We would be building up from that to that.

Okay? So we would want that one minus this one I believe.

Let's see if that works. Little trial and error there really. Ah, it's already saying it's circular so it's unhappy with me. And so it's done, its job nicely. Now we need to add in the circular switch and we've already got an if so we're in an awkward position. Now, probably the nicest way of sorting that out is to create an and.

And so we're jamming in another state there and we've now got a circular switch protected row as well as the other logic there. You can see as a copy to the right, nothing seems to be happening and that's because the circ switch is knocking that out. If I then enable iteration, nothing seems to happen. And then if I go and flip the switch, you can see that it has turned up.

You can see conceptually we've got a debt service reserve account and it needs to be built up in year 51. That then will go into line 15, okay And it will create a need for cash. And that need for cash will create then borrowing. So down here we've got equity and debt. And so the DSRA is a cash pool that's being built up from funding. Subsequently, we've still got DSRA.

Okay, so we've still got DSRA buildup, but we're gonna assume that that's being met from operational cash flows. And so we're gonna keep it outside of this source and uses.

Now it's actually reasonably common at this point to create errors and difficult to fix errors. So in the next video what we'll do is try and recreate one of those errors and just see how awkward they can get. So if you've got an error, if you're building along, don't worry, we'll try and figure it out now.