Determination of the PPA Rate

A PPA is one of the main factor that determines a power project’s ‘bankability’.

PPA rate = Cf + Ef

Cf = Capacity fee = fixed costs + debt service + sponsor reimbursement

Ef = Energy fee = fuel + variable O&M costs

Source:
FIGURE 3-9 Determination of the PPA Rate
Project Finance in Theory and Practice
Designing, Structuring, and Financing Private and Public Projects
by Stefano Gatti

Project Development Time Table

Moroccan Safi IPP Project Finance Case Study Summary

DOWNLOAD: Moroccan Safi IPP Project Finance Case Study Summary in PDF

1) Location: Greenfield coastal location outside the port of Safi (200km south of Casablanca)
2) Capacity : 1,380MW (gross)
3) Type : Coal-fired power plant
4) Major equipment : Boilers from IHI and steam turbines from Hitachi

Source: http://www.pfie.com/ultra-supercritical-project-financing/21177365.fullarticle

Peru LNG Project Finance Case Study Summary

DOWNLOAD: Peru LNG Project Finance Case Study Summary in PDF

   Source: http://www.hydrocarbons-technology.com/projects/peru-lng/peru-lng2.html

1) Location: Along the Pacific ocean and 600km from the Amazon jungle
2) 600km - 200km existing, 408km, 34 inch to built
3) Construction due date: by 2010
4) Plant: 52ha at Pampa Mechorita, 167km south of Lima,
■ Near Pan American highway
■ Beneficial for shipment & NIMBY
■ Near Camisea gas field -> Easy access for natural gas supply
5) Practicalities
   ■ Panama canal expansion -> Easier access to Europe
   ■ Cut Mexican demand -> Lower prices for US consumers
6) Possibility to expansion of another train.
■ Repsol discovered more gas in Block 57.
■ Petrobras is drilling in Block 110.


Source: http://www.pfie.com/unshakable-peru-lng/21073480.fullarticle

Reliances RPL Project Finance Case Study Summary

DOWNLOAD: Reliance's RPL Project Finance Case Study Summary in PDF

                                                                           Source : http://www.ril.com/ 

1) RIL

   ■India based largest private sector company

   ■Market cap : US$36bn

   ■Revenue : 2.8% of the GDP

   ■Contribution to total export : 8.2%

   ■Contribution to Gov't tax revenues : 8%

   ■Weighting in Sensex : 11.5%

   ■Credit rating : Baa2 (Moody's) and BBB (S&P) 

     <- one and two notches above Indian's soverign rating.

   ■Business through whole hydrocarbon value chain, Refining 57%, 

   ■Third largest refinery -> Construction (Ahead of schedule, within budget) 

     and O&M (100% Utilisation, Complexity 11.3, GRMs US$2~$3 above Singapore

     benchmark) well done

2) RPL

   ■Location : Special Economic Zone

   ■Export-oriented refinery complexes

   ■Scale : Sixth largest globally

   ■Capacity to process (Supply) : 580,000 barrels per day of crude oil, 900,000 

     tonnes/annum polypropylene plant

   ■Output product: Light and middle distillates (mainly transportation fuels)

   ■License: UOP, EMRE, Foster Wheeler & Dow (Proven technology)

   ■Offtake : European market : jet fuel, kerosene & diesel / US & Asia : gasoline  / 

     Asia : polypropylene.

   ■Cost : US$6bn <- Equity US$2.5bn / Debt $3.5bn

   ■Equity -> IPO

Source : http://www.pfie.com/relying-on-reliances-rpl/392274.article