Transcript Slide 1

Peru Hydros
Strictly Private and Confidential
Project Presentation
Carbon Finance Risk
Management Workshop
Peruvian small hydros
19th November 2003
ELECTRICIDAD ANDINA
ELECTRICIDAD ANDINA
Peru Hydros
Graton Hydro
Peru Hydros
Project Summary
Company:
Formed in October 2001
SIIF Energies has 80% of the Capital of SIIF-Andina
SIIF Energies is 80% owned by Electricite de France (EDF)
Electricidad Andina (G Cox / JM Cardenas) has 20%
Based in Lima: Av. La Paz 535 Of. 303 – Miraflores
Telephones: (511) 242-4935 and 444-8474
Core Business:
To develop, build and operate small hydroelectric power
plants in Peru.
To invest in electricity producing plants as an Independent
Power Producer.
To sell electricity to Utilities or private end users.
Peru Hydros
Project Summary - Andina
Company:
Electricidad Andina formed Dec 1996 by Guillermo Cox Zapater
and Juan Manuel de Cardenas.
Specializes in the identification, basic engineering design,
financial structuring and development of small to medium size
hydro power projects in Peru.
Experience:
Guillermo Cox - vast experience in the engineering, design,
manufacture, construction and commissioning of small hydro
plants in Peru, with more than 40 hydro plants with a combined
capacity of 50 MW in operation.
Juan Manuel de Cardenas has 25 years of experience in financial
engineering and advisory services, with over 20 projects financed
throughout the Caribbean, Central and South America. A former
IFC-World Bank Senior Investment Officer at BAS/ IFC.
Peru Hydros
Project Summary
Project features
 Solid and well documented hydrology
 Well known geology, with similar infrastructure works
built in the area.
 Good access to project site, roads, telephone, etc.
already built or installed.
 Capacity available on the transmission lines to transport
energy and capacity produced by the power plant.
 Adequate transmission lines near to the powerhouse,
 Project close to the market to be attended.
 No evident environmental problems.
 All projects lower than $US 900kw installed
Peru Hydros
First stage projects
Graton
5.0 MW
Moche I
12.0 MW
Moche II
8.0 MW
El Sauce
10.0 MW
Total
35.0 MW
Peru Hydros
Project Summary
Peru
El Sauce
Moche 1 and 2
Tanguche 1 and 2
Graton
Peru Hydros
Graton Summary
Location
San Mateo, Province of Huarochiri, 92 km East of Lima.
Power house 3200 meters above sea level.
Water
Rímac River.
Type:
Run of the River, parallel to the National Grid
Capacity:
Graton 5.0 MW
Design Flow:
Graton 13 m3/sec
Gross Head:
Graton 46 meters
Est cost:
US$ 4,500,000
IRR:
Project 19.90% - Equity 28%
Engineering:
Basic Engineering Designs and feasibility report finished
Permits:
Water Rights obtained - Generation authorization obtained Environmental Impact studies performed – Tunnel study
done
Peru Hydros
Project Summary - Graton
Graton intake
design
• Designs done
• Permits
obtained
• Project ready
to go
Peru Hydros
Project Summary - Graton
Site downstream
of intake at
Graton Tunnel
Simple project –
only 1km of
tunnel through
good rock
Peru Hydros
Location:
Project Summary – Moche 1
Water:
Otuzco, 56 km East of Trujillo. Powerhouse 1400m
above sea level.
Moche River, 2200 meters above sea level.
Project:
Capacity:
Design Flow:
Gross Head:
Est Cost:
IRR:
Engineering:
Run of the River; parallel to the National Grid.
12.0 MW
2 m3/seg
800 m
US$ 8,500,000
Project 17.27 %, Equity 25%
General Scope of the Project.
Permits:
Water Rights obtained - Generation Authorization not
presented, Water studies adequate
Peru Hydros
Location:
Water:
Project:
Capacity:
Design Flow:
Gross Head:
Est Cost:
IRR:
Engineering:
Permits:
Project Summary – Moche 2
6 km downstream Moche I, 50 km East of Trujillo.
Powerhouse 900 m above sea level.
Moche River.
Run of the River; parallel to the National grid.
8.0 MW
2 m3/seg
500 m.
US$ 6,700,000
Project 14.96 % - Equity 23%
General Scope of the Project.
Water Rights presented, waiting for authorization.
Generation Authorization not presented.
Environmental Impact studies not required Water
studies adequate to start
Peru Hydros
Project Summary – Moche 1
Powerhouse site
Peru Hydros
Project Summary – Moche 1 and 2
Water intakes
Peru Hydros
Project Summary – Moche 1 ands 2
Old irrigation canal
Penstock will run parallel
Peru Hydros
Location:
Water:
Project:
Capacity:
Design Flow:
Gross Head:
Est Cost:
IRR:
Engineering:
Permits:
Project Summary – El Sauce
Province of San Martin, in North Central Peru 1200
km from Lima. Powerhouse at 600m above sea level
Natural discharges of Lake El Sauce
Run of the River
9.6 MW
3 m3/seg
400 m
US$ 11,000,000
Project 19.95 % Equity 27%
Pre-feasibility Study done by SNC Lavalin available.
Water Rights obtained, Generation Authorization not
presented,Environmental Impact studies not
required. Long water history
Peru Hydros
Location:
Water:
Project:
Capacity:
Design Flow:
Gross Head:
Est Cost:
IRR:
Engineering:
Permits:
Project Summary - Tanguche I
Chavimochic Irrigation, 80 km from Chimbote. Powerhouse
located 200m above sea level
Irrigation canal with capacity for 95 m3seg.
Run of the River, operation parallel to the National grid.
20 MW
65 m3/seg
45 m
US$ 16,500,000
Project 20.63 % Equity 30%
Pre-feasibility Study done by El Proyecto Especial Chavimochic
available.
Water Rights obtained by the irrigation Project. Lands and
service roads granted to the irrigation project. Generation
Authorization not presented. Environmental Impact studies not
presented. Water study very good
Peru Hydros
Project Summary – Tanguche 1 and 2
Peru Hydros
Project Summary
Peru Hydros
Location:
Project Summary – Tanguche 2
Chavimochic Irrigation, 80 km from Chimbote.
Powerhouse located at 120 meters above sea level
Water:
Water discharged from Tanguche II not used for
agriculture.
Project:
Run of the River, operation parallel to the national grid.
Capacity:
30 MW
Design Flow:
55 m3/sec
Gross Head:
70 m
Estimated Cost: US$ 24,500,000
IRR:
Project 19.18 % Equity 30%
Engineering:
General Scope of the Project
Permits:
Water Rights obtained by the irrigation Project. Lands
and servitude granted to the irrigation projecteneration
Authorization not presented. Environmental Impact
studies not presented.
Peru Hydros
Project Summary – Carbon Credits
Key points:
 SIIF Andina’s Project Concept Notes for 65 MW, approved by World Bank.
 Carbon Credits for SIIF Andina will generate US$ 800,000 per year for a 7
year period, renewable for a second and third period of 7 years, subject to
base line approval.
 The World Bank mission to Peru 06 January to 14 January visited all project
sites and as result of the visit, the WB has confirmed that all projects are
Category “B” under World Bank Environmental Guidelines.
 Environmental Impact Studies for all projects need to be started before 31st
March 2003 to qualify for the first round of Carbon Credits.
 The cost of these studies are SIIF – Andina’s responsibility. The estimated
cost of this studies is estimated at US$20,000 to $25,000 per project.
 Phase 1 projects for carbon credits are Graton (6.5MW), Moche 1(12 MW),
El Sauce (10 MW) and Cerro Mulato (8 MW) if its acquisition is agreed by
SIIF.
 Phase 2 projects are Moche II (8 MW), Tanguche II and III (50 MW
combined) and Santa Rita (170 MW)
 All Phase 1 and 2 projects comprise a total of 264.5 MW
Peru Hydros
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Project Summary – state of completion
All projects delivered to pre-feasibility stage
Water analysis performed for all projects
System pricing modelled for each
Investment returns analysed – sensitivities
performed
Detailed design completed for Graton
Project model completed for each
All water rights held
Information memorandum prepared for Graton – rest
in progress
Peru Hydros
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Project Summary – what next
Working on replacement of strategic investor
Working on term funding
 Lease finance offer received from Peruvian
banks
Finalizing models and consolidated returns
Closing development on Graton
Peru Hydros
Project Summary
Banco de Crédito del Peru has presented a financing
proposal for Graton Hydro Project, based on the
following conditions:
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Amount:
Type of Credit:
Term:
Interest Rate:
Guarantee:
Up to US$ 4,500,000
Leasing
5 years
6.5%
Stand By Letter of Credit of a First
Bank valid until the Plant has been
operating satisfactorily for 6 months.
Peru Hydros
Project Summary
Energy Supply and Terms
 Supply: Up to 5MW and all the associated energy to
said capacity.
 Luz del Sur Obligations: to buy all capacity delivered
and all the associated energy to said capacity.
 Delivery Point: San Mateo Sub-Station
 Delivery timetable: 18 months from the signature of
the PPA contract.
 Duration the the PPA Contract: 10 years, with an
automatic renewal for 2 year periods.
Peru Hydros
Project Summary
Capacity and Energy Prices
PRICE = EAHP +EAFP + PHP
EAHP = Energy measured during peaks plus secondary toll charge between
Chosica Bus Bar and San mateo Sub-Station, multiplied by the peak
energy price at the Santa Rosa Bar, 220 KV
EAFP = Energy measured outside peaking plus secondary tolling charge
between Chosica Bus Bar and San Mateo Sub-Station, multiplied by the
non- peak energy price at the Santa Rosa Bar, 220 KV
PHP =
Monthly maximum demand measured at peak hour multiplied by the
Santa Rosa Bus Bar price 220 KV, which includes tolling charges of the
principal transmission system
Peru Hydros
Project Summary
Payment Terms
 Billing: Monthly
 All payments within the Peruvian Electricity System are
settled in US$.
 Payment: Luz del Sur shall pay invoices within 8 days
of receipt of the invoice.
 Delays in payments: two months of delays shall give
right to the generator to cut the supply of energy.
 Cut in the supply: Luz del Sur shall pay the generator
for all the capacity under contract until the contract is
sorted out or cancelled.
Peru Hydros
Project Summary
Project:
Installed Capacity:
Timetable:
Estimated Investment:
Development Costs:
SIIF Andina S.A
35.0 MW
2 years
31.5 million
1.5% of total project cost
under US$500,000 (1)
Total Investment:
Max. cost/ KW
$35 million (Estimated)
US$900,000
(1) Consists of direct costs and Andina’s operating
expenses