Project Finance: Practical Case Studies

per unit. According to its chairman, the MSEB would be paying DPC 1.4 billion rupees (US$32.8 million) per month. The MSEB fails ...

ernments to honour their guarantees, had caused DPC to default on all its contracts. By this time most of the contracts had been ...

Lenders stop advances By this point the foreign lenders were so unhappy with the lack of progress in project con- struction that ...

fer of assets to the MSEB, which allowed the assets of the power plant to be valued. Enron said that it intended to sell its sta ...

In early December 2001 Enron filed for Chapter 11 bankruptcy protection in the United States. Later that month DPC filed a US$18 ...

A payout under an OPIC insurance policy in these circumstances could trigger the Hickenlooper Amendment, which prevents the Unit ...

have the capacity either to offtake or to pay for the capacity of the Dabhol project and that problem is the result of political ...

nomic interest to do so. By not honouring their guarantee and counter-guarantee obligations, the Government of Maharastra and th ...

Chapter 6 PT Paiton Energy (Paiton I), Indonesia Type of project 1,230 MW coal-fired power plant. Country Indonesia. Distinctive ...

Project summary^1 Paiton Energy’s project is one of four similar-sized units at the Paiton power generating com- plex on the nor ...

Japan (IBJ) as financial advisers in February 1992. In August 1992, after several clarifica- tion sessions with each bidding gro ...

The contract of affreightment defines Louis Dreyfus et Cie’s obligation to transport coal from the Kelanis terminal to the Paito ...

been level. Another factor that increased the Paiton Energy tariff was the cost of connection lines and other infrastructure fac ...

events; and failure of the Indonesian government support letter to remain in full force and effect. Nonremediable events that re ...

The coordinating banks had to try to move both the project contracts and the financing ahead at the same time. Some decisions on ...

Structure of the financing The US$900 million Jexim facility finances up to 85 per cent of the amounts payable by Paiton Energy ...

Meeting the financial closing deadline When project negotiations began the coordinating banks told the government that a minimum ...

Intercreditor issues Some people say that because of intercreditor disputes it is difficult to arrange a deal with banks, bondho ...

ticular challenge. People from the United States, Japan and Indonesia had very different approaches to business when they starte ...

a result of the increasingly unstable political situation. The agency observed that social unrest in the capital city and elsewh ...