Beruflich Dokumente
Kultur Dokumente
Prof. b.p.mishra
Ximb
XUB.
1
Components
Start- up cost
Working capital
Financing costs
o Loan arrangement & Underwriting fees
o Loan or security registration cost
o Cost of Lenders advisors
( Both before & after Financial close)
o Interest During Construction Period (IDC)
o Loan agency Fees
o Commitment fees
Funding Of Reserve
Accounts
DSRA
Project Funding
ECAs
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13
Cash sweep
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The Example
umptions:
roject cost 1500, funded 1200 by Debt and 300 by E
ncome & Expenditure including interest are constant
475 and 175 p.a respectively
he tax DEP is 25% on WDV basis
( declining balance method)
ccounting Dep is same as Tax Dep.
he tax rate is 30%
the project makes tax loss, a tax credit of 30% of th
arried Forward, and applied against future taxes pay
oan principal repayment are 200 per annum
he figure runs for 6 years, although the project life i
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TOTA
L
Revenues
475
475
475
475
475
475
2375
Expenditure
-175
-175
-175
-175
-175
-175
-875
Tax DEP
-375
-281
-211
-158
-119
-89
-1144
Taxable
income/loss
(A+B+C)
- 75
19
89
142
181
211
567
Tax credit/due[-D
*30%}
23
-6
-27
-43
-54
-63
17
23
17
Tax credit CF
G
-10
-43
-54
-63
-170
Net Income[D-G]
- 75
19
79
99
127
148
397
Loan repayments
-200
-200
-200
-200
-200
-200
-1200
Dividend paid
-23
-99
-127
-148
-397
Cash flow[HC+I+J]
100
100
67
-42
-81
-111
33
Cash balance
100
200
267
225
144
33
190
Negative Equity
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PPP
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Cancelled Projects
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Distressed projects
Where the Government or the operator has
either requested termination or are in
arbitration.
Power Purchase Agreements:
980 MW Adani power project has a PPAs with Gujarat & Haryana
Government
4000-mw Tata Power- promoted Coastal Gujarat Power Ltd has PPAs
with Maharashtra,Punjab, Gujarat, Haryana, Rajasthan.
Metro Trains:
Rel Infra promoted Mumbai Metro in litigation with MMRDA over fares
Airport Expressway in Delhi, now run by DMRC, under dispute over
loan Repayment.
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Merged projects
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The focus
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The dual or multiple roles of the stake holdersblic authority. Concessionaire, the lenders, the contractors et
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Analysis of Risk
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Client
Lender
Client/
Funder
Client
Public
Authority
Client/
Guarantor
Client 29
Conflict of Interest
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31
32
1990
58
1992
82
1994
270
1996
304
1998
345
2000
202
2004
212
2006
330
2007
329
2008
250
2011
33
Social Factors
The factors that primarily contribute to the initiation and success of PPP
Are hardly foreseeable for a such long period Demand for PPP project services
Customers purchasing power
The stability of the prices
Political consideration-corruption, legal compliance
Ethics ,culture and tradition.
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35
Renegotiation
Problems of financial
renegotiation/hold-up in PPP
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Merits of Rebidding
Transparency-
Performance-
Financing-
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Renegotiation- why?
It is clear in hindsight that the magnitude of risks and the ability
of different stakeholders to manage them had not been
adequately assessed. The private sector has Over aggressive traffic estimation.
High debt leveraging
Exuberant Bidding
Lack of management maturity
Defective risk assessment & Forecasting Skills.
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Renegotiation- why?
NHAI has conclusively demonstrated:
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Thanks
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