Project Finance: Practical Case Studies

kilometres long delivers water from the tunnel and the powerhouse to the reservoir, provid-
ing additional water for irrigation and increasing the potential electrical generation of two
existing downstream facilities of the National Power Corporation (NPC), the government-
owned utility that is the primary supplier of electricity in the Philippines. The project is
expected to provide irrigation for about 35,000 hectares of new rice lands and to stabilise the
water supply for 102,000 hectares of existing rice lands, resulting in increased rice produc-
tion of about 465,000 tonnes per year over the next 50 years.

WATER AND POWER

Exhibit 15.1

Transaction structure

CECI

35%

minimum

ownership

US$

US$

Collateral

Securities Contractorservices

Full faith

and credit

performance

undertaking

Unconditional

performance

guarantee

Irrevocable

letter

of

credit

Capital

contributions

Water and

energy

US$

US$ US$

35%

minimum

ownership

30%

maximum

ownership

US$

Kiewit shareholdersMinority

Trustee/

Collateral Agent

Company NIA

Security

holders Contractor

Hanbo Steel

Korea

First Bank

Republic of the

Philippines