Export Initiative Renewable Energy -...

www.export-erneuerbare.de

Export Initiative Renewable Energy

Wind Energy Sector Tunisia

Financing Opportunities and Risk Mitigation

Project Finance International: Dr. Joachim Richter

EXPORT INITIATIVE RENEWABLE ENERGY

PFI Corporate Profile

Highly specialized Consulting Company

Financial Engineering

Export & Trade Finance

Financing Marketing

Political Engineering

Lobbying and Research inside the Institutions

Financial Experts for Export Initiative Renewable Energies


Financial Engineering –

Importance and Business Rational

The creative financing and the creative project development decides in an increasing global competitive pressure about the sales success

This applies for EPC Contractors, (sub)-suppliers, Consultants


4 Financing Scenarios

Financing Facilities

Local financial Market Government Subsidies

Cash flow based Project financing

BOOT Models

Donor Financing International

Finance Institutions

Export credits ECA Guarantees


1st Scenario - The Donor Financing

Majority of all Infrastructure Projects are executed by Public Sector

The Development Institution is the Loan Partner of the Government or Government Entity in Tunisia (STEG) 3 general principles

Application Principle

Sovereign Guarantee

Tender Procedure


International Finance Institutions (IFIs) in Tunisia

European Bank for Reconstruction and Development(EBRD)

(located in London)


Business Opportunities Donor financed projects

Consulting Companies Feasibility Studies, project preparation specific services – i.e. wind atlas; Environmental Assessment Study

Suppliers and specific technology provider

project is structured in individual lots individual procurement of lots

EPC contractors

turn key procurement business rational for SMEs nominated subcontractor


The Project Cycle

Responsibility of Executing Agency STEG

Preparation of Procurement Procedure

Preparation of Procurement Plan and Tender Doc`s

Invitation to Bid

Tender Evaluation

Implementation


2nd Scenario - local financial market

Finance Institutions in Tunisia received refinancing loans

from international development institutions like - The World Bank - KfW Development Bank - European Investment Bank

Bank capitalization to provide loans for SMEs


2nd Scenario – local commercial financial market

Amen Bank Avenue Mohamed V M Rejeb Chebl Director International Relations Tel: +216 71 148 115; Fax: +216 71 834 770

[email protected]

Partner Bank for IFC Global Trade Finance Program L/C confirmation program – long maturity

mailto:[email protected]


3rd Scenario - export financing – risk mitigation

Payment Securities

Export Credit Agencies

Forfaiting


Advising (confirmation) of L/C

L/C issuing bank (Bank of Importer)

L/C advising bank (Bank of Exporter)

Tunisian Importer (L/C Applicant)

German Exporter (Beneficiary)

Issuance of L/C

Pres. of Documents

Delivery Contract

L/C Application

Documents

Debit of L/C value

Documents

Payments

Payment under L/C

Letter of Credit


BPO Obligor Bank (Bank of Importer)

BPO Recipient Bank (Bank of Exporter)

Tunisian Importer (Applicant of BPO)

Exporter (Beneficiary of BPO)

Match of contract data

Delivery

Contract

BPO-Application and delivery of contract data

Debit of Invoice Amout

(Confirmation of BPO)

Delivery of contract data

Payment of Invoice

Amount

Payment at Maturity

Bank Payment Obligation (BPO)


Tunisian Importer

German Exporter

Bank of Exporter

Delivery Contract

Loan Agreement

Disbursement (pro rata deliveries and Services)

Repayment (Instalment/Interest)

Tunisian Bank (Amen Bank)


Local Loan Agreement

State ECA EulerHermes

Euler Hermes-covered Buyer`s credit (Bank-to-

Bank Loan)


TunisainBank (Amen Bank)


Tunisian Importer

German Exporter

Bank of Exporter

Delivery Contract

Disbursement (pro rata deliveries and Services)

State ECA EulerHermes

Euler Hermes-covered Buyer`s credit

(corporate loan)


Euler Hermes Country Policy Tunisia

Maturity Explanation

Short term There are no formal restrictions on cover

Medium/long term There are no formal restrictions on cover

Collateral Collateral is normaly not required

Country Category 4

Loan Structure According to Hermes are corporate loans majority

bank to bank minority


Euler Hermes Country Policy Tunisia

Indicative Cost Structure: Loan Amount 1. Million €;

Time for delivery: 6 Months;

Payment Terms: 15% advanced payment; 85 % coverage

Costumer Rating: CC3 „medium“

Maturity Cost for cover

1 year 18. 000 €

20. 000 € in case of 100 % coverage

3 years 30. 000 €

5 years 45. 000 €


Small Ticket Financings Northstar Europe

German Banks are very reluctant to arrange small loan amounts

including Hermes coverage

Northstar Europe is experienced for small loans for SMEs

Contact:

Northstar Europe

rue du Saint-Esprit; L-1475 Luxembourg

Tel: +352 26 47 66 1 Fax: 352 26 47 66 99

[email protected]; http://www.northstareurope.eu/


http://www.northstareurope.eu/


4th Scenario - Cash Flow based Project Finance


4th Scenario – BOOT Projects (IPP PP Scenario)

After intensive project preparation work, “due dilligence” – Financial closing Wind Park will be built

B="build“

The Wind Park will be owned and operated „Debt Service Cover Ratio“

O+O= "own" and "operate“

After termination of concession period plant will/might be transferred to the State

T= "transfer“


Thank you very much for your kind attention!

Project Finance International - Dr. Joachim Richter

[email protected]

www.project –finance.de




Export Initiative Renewable Energy -...

Documents

Transcript of Export Initiative Renewable Energy -...