Project Finance: Practical Case Studies

Project summary This build-operate-transfer (BOT) power project serves the city of Cali in Colombia. It is owned by Emcali, the ...

TERMOEMCALI, COLOMBIA Exhibit 3.1 Pipeline route TER MOEMCALI VENEZUELA CARIBBEAN SEA PACIFIC OCEAN ECUADOR PERU BRAZIL COLOMBIA ...

Project economics Colombia’s power industry Before the TermoEmcali project was completed Colombia had 10,500 MW of installed pow ...

TERMOEMCALI, COLOMBIA number of Emcali’s customers increased from 357,000 in 1992 to 420,000 in 1996. Peak elec- tricity demand ...

POWER PLANT Exhibit 3.2Project ownership structure Emcali BEn Generating (International) VIII Ltd (BEnICO) Bechtel Enterprises, ...

missioned a dispatch study to determine how competitive TermoEmcali would be com- pared to other power sources. The study conclu ...

electrical output and heat rate. Similarly, bonuses could be earned if schedule and perfor- mance goals were exceeded. Gas suppl ...

world. The company’s revenues in 1996 were US$1.3 billion. It operated 36 plants with a total capacity of 3,500 MW, including fo ...

Risk analysis Construction risk As with any major construction undertaking, many factors such as material shortages, labour disp ...

Technical risk The power plant uses a 155 MW Westinghouse 501F gas turbine. (The Westinghouse turbine business is now part of Si ...

Dispatch risk The structure of the capacity and energy payments under the PPA was designed largely to insulate the project from ...

Termobarranquilla. Nonetheless, Colombia’s government spending rose from 11 per cent of GDP in 1990 to 18 per cent in 2001, resu ...

Duff & Phelps reduced its rating to ‘BBB-’ in September 1999, citing recent pressure on the peso, a deeper-than-expected rec ...

Structure of financing Financing for the project was provided in 1997 by a US$165 million Rule 144A/Regulation S debt issue lead ...

Shortly before the project financing was closed, Colombian regulations were changed, to prohibit the repayment of more than 40 p ...

Security package Senior lenders are secured by a lien on and security interest in the collateral, subject to the priority of pay ...

How the financing was arranged Bear Stearns was engaged by InterGen before the banks were. InterGen wanted to do a bond financin ...

banking firm risks doing a lot of work for minimal fees. Alternatively, the client may choose a universal bank to underwrite a f ...

the transaction to be well-structured, with lenders enjoying the benefits of a comprehensive security package, but noted that th ...

that TermoEmcali was in technical default under the terms of the PPA because the beginning of commercial operations had been del ...