Project Finance Case Studies in the Asian Power Sector

Transcription

1 Project Finance Case Studies in the Asian Power Sector Masayuki Ota Deputy Director Division 2, Power and Water Finance Department Infrastructure Finance Group Japan Bank for International Cooperation (JBIC)

2 1. JBIC s Track Record 2. Overview of Project Finance 3. Case Studies 2

3 Organization Energy, Natural Resources and Environment Finance Group Oil and Gas Finance Department Mining and Metals Finance Department Nuclear and Renewable Energy Finance Department Infrastructure Finance Group Power and Water Finance Department Transportation and Telecommunication Finance Department Corporate Finance Department Industry Finance Group Marine and Aerospace Finance/Financial Products Department West Japan Office Finance Division for SMEs 3

4 Financial Instruments Overseas Investment Loans JBIC Commercial Lenders Loans Repayment Japanese Company(ies) Equity Joint Venture Overseas Projects Export Loans JBIC Commercial Lenders Loans Repayment Japanese Exporter(s) Overseas Importers Exports of plants, etc. 4

5 JBIC s Track Record in Project Finance Value of Loan Commitments by Region (as of April 30, 2014) Value of Loan Commitments by Sector (as of April 30, 2014) Russia 8% Europe 6% Africa 4% Middle East 27% Transportation 6% Ship 9% Other 3% Power & Water 34% Oseania 17% Refinery & Petrochemical 11% Americas 18% Asia 20% Mining & Metals 11% Oil & Gas 26% 5

6 JBIC s Track Record in Asian Power Sector Vietnam Phu My 2 Power Plant Phu My 3 Power Plant Philippines Mirant Power Acquisition Ilijian Power Plant Thailand BLCP Power Plant Kaeng Khoi 2 Power Plant Ratchaburi Power Plant Nong Saeng Power Plant U-Thai Power Plant Khanom 4 Power Plant Singapore Senoko Power (Equity Participation) Indonesia Paiton Power Plant Tanjung Jati B Power Plant Expansion Paiton Power Plant Expansion Project Cirebon Power Plant Sarulla Power Plant 6

7 1. JBIC s Track Record 2. Overview of Project Finance 3. Case Studies 7

8 Typical IPP Structure Dividends Sponsor(s) Lenders Debt Service Payments Escrow Account Equity Debt O&M Costs Revenues EPC Contractor EPC Project Company Power Supply Offtaker O&M Fuel Supply License / Concession Operator Fuel Supplier Host Government 8

9 Project Risks Project Risks Commercial Parties Commercial Risks Governments Political Risks Acts of God Force Majeure 9

10 Commercial Risks Overview Mitigation Sponsor Risk The possibility that the sponsors will be unable to inject equity into the project company Require a third party credit support, if the sponsor is not creditworthy Completion Risk The possibility that the project will not be constructed on time, on budget, or to the required specifications Use a reputable and financially sound contractor Require a lump sum turn key contract Operating Risk The possibility that the facility will be unable to perform consistently at a level sufficient to meet the required performance criteria Use a reputable and financially sound operator Fuel Supply Risk The possibility that the project will be unable to have steady supply of fuel at a reasonable cost Require a long term fuel supply agreement Require that the price of fuel be passed through to the offtaker Offtake Risk The possibility that the offtaker will be unable to purchase the power Require a long term take-or-pay contact Require a third party credit support, if the offtaker is not creditworthy Infrastructure Risk The possibility that the project will be unable to access to the feedstock and fuels etc Seek protection from the host government etc 10

11 Political Risks & Force Majeure Currency Transfer Restriction Overview The possibility that the host government / central bank will restrict currency transfer Mitigation Seek protection from the host government etc Use a political risk guarantee Adverse Regulatory Changes The possibility that the host government will establish a regulation that adversely affect the project Carry out a legal due diligence Seek protection from the host government etc Use a political risk guarantee Expropriation The possibility that the host government will impair or eliminate ownership of or control over the project Use a political risk guarantee Terrorism The possibility that the project will suffer from terrorism Use a terrorism insurance Force Majeure The possibility that the project will suffer from unexpected events which are outside control of the transaction parties e.g. war, earthquakes, and storms Use insurances Put in place force majeure clause 11

12 Risk Allocation Risks should be allocated to parties which are best to control them Dividends Sponsor Risk Sponsor(s) Lenders Debt Service Payments Escrow Account Equity Debt O&M Costs Revenues Completion Risk EPC Contractor EPC Project Company Power Supply Offtaker Offtake Risk O&M Fuel Supply License / Concession Operating Risk Fuel Supply Risk Political Risk Operator Fuel Supplier Host Government 12

13 1. JBIC s Track Record 2. Overview of Project Finance 3. Case Studies 13

14 Power Market: South-East Asia Merchant Singapore Philippines Vietnam Indonesia Thailand Contracted Offtaker : EVN Offtaker : PLN Offtaker : EGAT 14

15 Case Study Thai IPP Project Financing for Utai Natural Gas-Fired Combined Cycle Power Plant (1,600MW) Lenders J-Power / Gulf Energy (Sponsors) ADB JBIC Japanese Banks Thai Banks Equity Debt EPC Contractor EPC Gulf JP UT Company Limited Power Supply EGAT (Offtaker) Gas Supply PTT (Fuel Supplier) 15

16 Thank you! Information contained in this presentation may be subject to change without notice and may at any time be superseded. JBIC and/or any person accept no liability whatsoever for any direct, indirect or consequential loss of any kind arising out of the presentation and its materials, or relevant financial advisory services. All rights reserved. No part of the materials may be reproduced, stored, or transmitted in any form or by no means, electronic, mechanical, photocopying or otherwise, without the prior consent of JBIC.