For a thermal power plant project, a project finance model's input typically looks as follows:
- Power plant's installed capacity, MW
- Capacity utilization factor
- Internal consumption rate, %
- Power plant's gross efficiency, %
- Lower heat value of fuel, MJ/unit
- Price of fuel, $/unit
- Offtake electricity price, $/MWh
- Inflation rate, %
- Fuel price escalation, % per year
- Electricity price escalation, % per year
- Cost of consumables, $/MWh
- Equipment maintenance, $/MWh
- Depreciation period, years
- Personnel expenses, $ per year
- General and administrative expenses, $ per year
- Corporate tax rate, %
- Total CAPEX $
- 'Buffer' for cost overruns, % of total amount to be financed
- Fuel and consumables reserve, days
- Imported equipment, % of total CAPEX
- Import duties, %
- Initial insurance premium, % of total CAPEX
- Construction period, years
- Period of commercial operation, years
- Equity portion in total financing, %
- Required return on equity, %
- Tenor of debt, years
- Grace period on debt repayment, years
- Interest rate during construction, %
- Interest rate during commercial operation, %
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