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Project Finance - Hydro Electric Power - Valuation
Project Finance - Hydro Electric Power - Valuation
Project Finance - Hydro Electric Power - Valuation
Inputs
Capacity/MW 500
Tariff/Kwh Rs 3.5
O and M 1.50%
Fixed Costs/Kwh 1
Tariff Escalation / Per Kwh 0.15
Days Per Year 365
Hour/Day 24
Rs per Crore 10000000
Escalation in O&M 5%
Tax 30%
Depreciation 5%
T&D Loss 5%
Free power first 12 years 12%
Free power after first 12 years 18%
Interest 10%
IRR 16.55%
, 25% and 25% during the construction period in years 1 ,2 ,3 based on the contruction plan
andard Industry estimates are taken for working capital(WC) and O&M expense
cost of hydro power production per Kwh(varies from 1-2 cent/kwh)
factored for first two years of operation(Case Data)
to account for 70% of Project Cost
assuming average amount outstanding per year
to be self Financed(Not borrowed)
Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
1592 1513 1437 1365 1297 1232 1171 1112
84 80 76 72 68 65 62 59
5 6 7 8 9 10 11 12
48.30% 48.30% 48.30% 48.30% 48.30% 48.30% 48.30% 48.30%
772.17 803.91 835.64 867.37 899.1 930.84 962.57 994.3
38.61 40.2 41.78 43.37 44.96 46.54 48.13 49.72
92.66 96.47 100.28 104.08 107.89 111.7 115.51 119.32
640.9 667.24 693.58 719.92 746.26 772.6 798.93 825.27
211.55 211.55 211.55 211.55 211.55 211.55 211.55 211.55
0 3.17 3.33 3.5 3.67 3.86 4.05 4.25
429.35 452.51 478.69 504.87 531.03 557.18 583.33 609.47
201.49 195.81 190.14 184.46 178.78 173.11 167.43 161.76
97.76 92.87 88.22 83.81 79.62 75.64 71.86 68.27
130.11 163.84 200.33 236.59 272.62 308.43 344.04 379.44
0 0 0 0 0 0 103.21 113.83
130.11 163.84 200.33 236.59 272.62 308.43 240.83 265.61
331.59 359.65 390.47 421.05 451.41 481.54 358.03 378.84
41.16 41.16 41.16 41.16 82.32 82.32 82.32 82.32
0 0.48 0.5 0.52 0.55 0.58 0.61 0.64
388.19 410.88 437.03 463.18 448.16 474.29 346.96 364.15
Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23
1056 1004 953 906 860 817 777 738
56 53 50 48 45 43 41 39
13 14 15 16 17 18 19 20
48.30% 48.30% 48.30% 48.30% 48.30% 48.30% 48.30% 48.30%
1026.04 1057.77 1089.5 1121.24 1152.97 1184.7 1216.44 1248.17
51.3 52.89 54.48 56.06 57.65 59.24 60.82 62.41
123.12 126.93 130.74 201.82 207.53 213.25 218.96 224.67
851.61 877.95 904.29 863.35 887.79 912.22 936.66 961.09
211.55 211.55 211.55 211.55 211.55 211.55 211.55 211.55
4.47 4.69 4.92 5.17 5.43 5.7 5.98 6.28
635.59 661.71 687.81 646.63 670.8 694.97 719.12 743.25
156.08 150.41 144.73 139.05 133.38 127.70 122.03 116.35
64.85 61.61 58.53 55.60 52.82 50.18 47.67 45.29
414.66 449.69 484.55 451.97 484.60 517.08 549.42 581.61
124.4 134.91 145.37 135.59 145.38 155.13 164.83 174.48
290.26 314.78 339.19 316.38 339.22 361.96 384.59 407.13
399.52 420.07 440.50 413.72 432.59 451.35 470.01 488.57
82.32 82.32 82.32 82.32 82.32 82.32 82.32 82.32
0.67 0.7 0.74 0.78 0.81 0.85 0.9 0.94
381.38 398.65 415.97 386.23 402.28 418.36 434.47 450.60
Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30 Year 31
701 666 633 601 571 542 515 489
37 35 33 32 30 29 27 26
21 22 23 24 25 26 27 28
48.30% 48.30% 48.30% 48.30% 48.30% 48.30% 48.30% 48.30%
1279.9 1311.63 1343.37 1375.1 1406.83 1438.57 1470.3 1502.03
64 65.58 67.17 68.76 70.34 71.93 73.52 75.1
230.38 236.09 241.81 247.52 253.23 258.94 264.65 270.37
985.52 1009.96 1034.39 1058.83 1083.26 1107.7 1132.13 1156.57
211.55 211.55 211.55 211.55 211.55 211.55 211.55 211.55
6.6 6.93 7.27 7.64 8.02 8.42 8.84 9.28
767.37 791.48 815.57 839.64 863.69 887.72 911.74 935.73
110.68 105.00 99.32 93.65 87.97 82.30 76.62 70.95
43.02 40.87 38.83 36.89 35.04 33.29 31.63 30.05
613.67 645.60 677.41 709.10 740.67 772.13 803.49 834.74
184.1 193.68 203.22 212.73 222.2 231.64 241.05 250.42
429.57 451.92 474.19 496.37 518.47 540.49 562.44 584.32
507.04 525.42 543.72 561.92 580.05 598.10 616.08 633.98
82.32 82.32 82.32 82.32 82.32 82.32 82.32 82.32
0.99 1.04 1.09 1.15 1.2 1.26 1.33 1.39
466.76 482.94 499.13 515.35 531.57 547.81 564.06 580.31
Year 32 Year 33 Year 34 Year 35 Year 36 Year 37 Year 38 Year 39
465 442 420 399 379 360 342 325
24 23 22 21 20 19 18 17
29 30 31 32 33 34 35 36
48.30% 48.30% 48.30% 48.30% 48.30% 48.30% 48.30% 48.30%
1533.77 1565.5 1597.23 1628.97 1660.7 1692.43 1724.17 1755.9
76.69 78.27 79.86 81.45 83.03 84.62 86.21 87.79
276.08 281.79 287.5 293.21 298.93 304.64 310.35 316.06
1181 1205.43 1229.87 1254.3 1278.74 1303.17 1327.61 1352.04
211.55 211.55 211.55 211.55 211.55 211.55 211.55 211.55
9.75 10.23 10.75 11.28 11.85 12.44 13.06 13.71
959.7 983.65 1007.57 1031.47 1055.34 1079.18 1102.99 1126.77
65.27 59.59 53.92 48.24 42.57 36.89 31.22 25.54
28.54 27.12 25.76 24.47 23.25 22.09 20.98 19.93
865.89 896.94 927.89 958.75 989.52 1020.20 1050.79 1081.30
259.77 269.08 278.37 287.63 296.86 306.06 315.24 324.39
606.12 627.85 649.52 671.13 692.66 714.14 735.56 756.91
651.81 669.57 687.27 704.90 722.46 739.96 757.41 774.79
82.32 82.32 82.32 82.32 82.32 82.32 82.32 82.32
1.46 1.54 1.61 1.69 1.78 1.87 1.96 2.06
596.57 612.83 629.09 645.36 661.61 677.87 694.11 710.34
Year 40
308
16
Year 40
56.76
56.76
0.00
28.38
2.84
37 38 39 40
48.30% 48.30% 48.30% 48.30%
1787.63 1819.36 1851.1 1882.83
89.38 90.97 92.55 94.14
321.77 327.49 333.2 338.91
1376.48 1400.91 1425.35 1449.78
211.55 211.55 211.55 211.55
14.4 15.12 15.88 16.67
1150.52 1174.24 1197.91 1221.56
19.86 14.19 8.51 2.84
18.94 17.99 17.09 16.24
1111.72 1142.06 1172.31 1202.48
333.52 342.62 351.69 360.74
778.20 799.44 820.62 841.74
792.11 809.37 826.58 843.72
82.32 82.32 82.32 82.32
2.16 2.27 2.38 2.5
726.57 742.77 758.97 775.14