Venture in Power Project.

Venture capitalist having financial capacity to invest in 800 to 1000 MW Power Project in middle east should contact for more details .
R.A.Sheikh

The total cost of project will NOT be financed or provided by the host government. The project developer will arrange 100% financing at its own through its own resources. The recovery of capital and profits will be generated through the sale of produced energy to the host government under a PPA, signed in between the department of power and the project developer and this PPA will be endorsed by the power ministry of the host government.

ABSOLUTELY NO BANK GUARANTEE OF ANY AMOUNT WILL BE PROVIDED AS COLLATERAL OR DOWN PAYMENT NEITHER THE PPA WILL BE ENDORSED OR GUARANTEED BY ANY COMMERCIAL OR CENTRAL BANK OF THE HOST GOVERNMENT.

The PPA will be divided into two parts:

a. Fixed Costs Factor: which will cover the total capital cost of project and O & M portion. The project developer will divide its total cost of project (up to the startup point) by 25 years and then will add the estimated O & M (operating & maintenance) expenses. The total cost/year will then be divided by the total production (sale-able energy) to calculate the fixed cost factor for the energy tariff. O & M expenses will be adjusted to the inflation rate as per consumer price index (CPI) in subsequent years. Now this portion will be added with the profits (whatever developer wants to generate from the operation) and a net fixed factor will be determined. Pls keep in mind that the current selling price of energy unit in the region is around US$0.0850. Pricing should be competitive with the international prevailing rates offered for 100% fuel based power generation. The developer will bill this portion to the government and will get payment on monthly basis (within 48 hrs of submitting the bill)

a. Variable Costs Factor: This portion of cost will cover the fuel costs. Though added in the tariff, this portion will be paid by the host government directly to the fuel supplier per their agreement and developer will not be responsible to manage this part unless the developer wants to have its own arrangement for fuel supply. In case if the developer will have its own supply then the government will pay the total billed amount on monthly basis and the developer will be responsible to maintain the normal and steady supply of fuel to the power house.