Portland Advisers acted as financial adviser to US Ex-Im Bank in connection with its support for the financing of the 125 MW US$ 415 million CSP Power Project in Rajasthan, India sponsored by Reliance Power Limited. Ex-Im Bank’s loan tranche of US$ 80.3 million is part of a total debt package of $285 million, with other lenders being the Asian Development Bank and FMO, the Dutch development bank. The funding includes a domestic Rupee loan tranche. The transaction closed in July 2012.
The project uses compact linear Fresnel reflector (CLFR) technology from AREVA Solar Inc., California. CLFR technology boils water using a series of rotating flat mirrors to concentrate sunlight onto a central elevated system of tubes that contain water. The solar system produces superheated steam that is collected in a piping system and transported to a steam turbine to produce electricity. This is one of the first projects to use technology of this kind from AREVA Solar on a large commercial scale.
The CSP Power Project was developed by Reliance Power Ltd in close cooperation with AREVA. The EPC contract and O&M services are being provided by Reliance Infrastructure Limited. Power will be sold under India’s National Solar Mission program to NVVN, a subsidiary of state owned National Thermal Power Cooperation.
Geoff Knox and his team were responsible for the following tasks:
- Project appraisal and identification of critical issues
- General review of project agreements, including detailed review of the PPA
- In-depth review of EPC contract (with focus on LD scheme, both for delay and performance)
- Review and structuring of project model including the development of a hedging strategy for currency exposure ($ loan versus Rs revenues under the PPA)
- Assistance with the preparation of internal papers
- Term sheet negotiation with client (in close cooperation with Ex-Im staff)
- On behalf of Ex-Im, managing the commercial aspects of the loan documentation process
- Advising Ex-Im on key issues arising out of technical due diligence in close cooperation with Technical and Legal Adviser and
- Engagement and Management of the Insurance Due Diligence process
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