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InfraCo Limited: Innovative Project Structures for Risk Mitigation and Capital Access

Explore innovative project structures to mitigate risks and access capital at the Regional Electricity Investment Conference. Learn about guiding principles, project financing, construction, operations and maintenance, fuel supply, regulatory issues, and more.

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InfraCo Limited: Innovative Project Structures for Risk Mitigation and Capital Access

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  1. InfraCo Limited Project Structures to Mitigate Risks and Access Capital Regional Electricity Investment Conference 19-21 September 2005 Windhoek, Namibia

  2. Guiding Principles • Are the risks being distributed and allocated to the project participant best capable of assuming this risk? • Are there any residual risks assumed by the Project that it does not control

  3. Project Financing Project Structure Construction Loan Equity/Debt Energy Purchase Agreements Power User Thermal User Operations & Maintenance Regular Operation, Overhaul And Outage Maintenance Turnkey Design & Construction Engineering, Equipment Procurement, Construction Start-up and Testing Sovereign/Regulatory Issues Project Fuel Supply Agreements Primary/Secondary Fuel Sources Transportation Environmental & Other Permitting Permits for Plant, Air, Water, Mining & Ash Disposal Site Control Site Right-of-Ways and Easements Typical Project Structure

  4. Power Purchase Agreement • Tariff Structure • Capacity • Energy • Foreign Exchange Indexation • Inflation Indexation • Term • Longer the Term the Cheaper Capacity Payment • Early Termination and Financing Assumption

  5. Equipment, Procurement & Construction • Scope of Work • Interconnection Issues • Handover • Contract Price • Currency and Inflation Indexation • Change Orders • Guarantees • Output • Heat Rate

  6. Operation &Maintenance • Owner Operated • Regular Maintenance • Major Maintenance • Term • Price Protection • Availability Guarantee

  7. Fuel Supply • Plant Operating Characteristics • Minimum Take • Price Formula • Matching Energy Payment • Delivery Risk • Security Package • Termination

  8. Sovereign Guarantee • Financial Guarantee • Limited Value • Ring-Fencing Sector Cash Flow • More Effective • More Controversial • Change of Law/ Regulatory Risk • Exchange Controls • Covertibility • Availability • Political Events • Expropriation

  9. Management Team • InfraCo Management Services Limited 12 St James’s Square London SW1Y 4RB Tel: +44 (0) 20 7153 5879 Fax: +44 (0) 20 7849 5881 • Richard Parry Tel: +44 (0) 20 7153 5880 E-mail: richard.parry@infracolimited.com • Gad Cohen Tel: +44 (0) 20 7153 5883 E-mail: gad.cohen@infracolimited.com • Ebbe Hamilton Tel: +44 (0) 20 7153 5879 E-mail: ebbe.hamilton@infracolimited.com • Tony Clamp Tel: +44 (0) 20 7153 5881 E-mail: tony.clamp@infracolimited.com • Jonathan Hoffman Tel: +44 (0) 20 7153 5882 E-mail: jonathan.hoffman@infracolimited.com

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