|
|
|
For more information
concerning the wide array of our Project
Development/Project Finance Services, contact our
Project Finance Unit at:
info@boyadjiangroup.com
|
|
|
|
|
|
|
|
|
|
|
|
Services to Project Developers,
Investors and Contractors requiring innovative financing
structures for Private Finance Initiative (PFI) and Public
Private Partnership (PPP) Projects (Privatization, BOT, BOOT,
Concessions…). |
|
Project Financing or Project
Finance involves raising funds to finance a capital investment
project in which the lender looks primarily to the revenues
expected to be generated by the project itself for the
repayment of its loan rather than to the general credit of the
project sponsor. Project financing is commonly used as a
financing method in capital-intensive industries for projects
requiring large investments of funds, such as the construction
of power plants, pipelines, tall roads, hotels, tourist
resorts, industrial facilities and heavy manufacturing plants.
The Services offered by Boyadjian & Associates are divided
into four distinct areas of activity, all of which compliment
our Project Financing activities as a whole: |
|
|
|
|
|
|
|
As one of the first
steps in a Project Financing, Boyadjian and Associates
prepares the feasibility study showing the financial and
economical viability of the Project. At Boyadjian &
Associates, we analyze every technical, financial and
other aspect of the Project, including the time frame for
completion of the various phases, and clearly set forth
all of the financial and other assumptions upon which the
conclusions of the study are based. |
|
|
|
By using a wide range
of modeling software, we are able to facilitate the early
investigation into the financial feasibility of the
Project including total Project costs, cash flow
forecasts, projected financial statements, project's debt
capacity, etc. We undertake financial projections,
sensitivity analysis and advice on project development
matters in discreet forum with knowledgeable industry
professionals. Among the services contained in our
feasibility studies:
-
Review
of macroeconomic and microeconomic conditions.
-
Initial
due diligence on partners' qualifications.
-
Basic
technological feasibility of the project.
-
Underlying
economic rationale of the project, utility demand.
-
Analysis
of the appropriate size and technology of the project.
-
Financial
modeling: Capital costs, Direct Cost, Operating Cost,
Selling Price.
-
Preparation
of cost estimates for project development, construction,
operation and management.
-
Development
of project financial model with best available data to
arrive at IRR.
-
Writing
brief project profile to be used in communication with
other participants.
-
Detailed
engineering and technical feasibility, environmental
compliance.
|
|
Topˆˆˆ
|
|
|
|
|
|
A financial plan for a
Project includes arrangements for both construction
financing and permanent financing. The development of a
specific financing plan requires a careful analysis of the
potential sources of funds in relation to the Project's
year-to-year funds requirements, available cash flow, and
availability of credit support mechanism to support
project debt.
Boyadjian and
Associates is familiar with both the process of raising
capital, and the characteristics of specific investment
firms. Once the developer has made the decision to raise
development funds, we:
-
Find
a foreign partner if you don't already have one.
-
Select
appropriate partners: other developers, equipment vendors,
O&M firms, EPC firms, passive equity investors and
development assistance funds.
-
Approach
export credit agencies, multilateral institutions, and
other providers of financial support.
-
Negotiate
terms of finance.
In all instances though
the process of securing such financing and guarantees can
be cumbersome and time consuming. Once a well-written
Project Information Memorandum has been completed and all
other development tasks have been finalized, Boyadjian and
Associates will help you create investment syndicates and
manage competitive solicitations to ensure best financing
terms. |
|
Topˆˆˆ
|
|
|
|
|
|
Every investment and
financing decision involving allocation of resources under
uncertain conditions is associated with some risk, which
is in effect, either assumed in the expectation of a
higher return, or is transferred to others through hedging
and/or contracting arrangements.
Boyadjian and
Associates has the ability to understand, measure, and
manage risk. Our Risk Analysis and Assessment Team
recognizes the uncertainty that surrounds the time and
price forecast of the project by accepting that there is a
variety of possible outcomes of a range of identifiable
risks. We are able to allocate project-specific risks to
parties best able to bear them, control performance risk
through incentives, and use market hedging instruments for
covering market-wide risks arising from fluctuations. We
assess the following project-related risks:
|
|
|
|
-
Completion
Risk
-
Delay
Risk
-
Cost
Overrun Risk
-
Technology
Risk
-
Project
Management Risk
-
Subcontracting
Risk
-
Credit
Risk
-
Contractual
Risk
-
Environmental
Risk
-
Performance
Risk
|
-
Regulatory
Risk
-
Off-take
Risk
-
Market
Risk
-
Escalation
Risk
-
Interest
Rate Risk
-
Exchange
Rate Risk
-
Indexation
Risk
-
Force
Majeure Risk
-
Political
Risk
|
|
|
Topˆˆˆ
|
|
|
|
|
|
Project finance
transactions are typically governed by a nexus of
long-term formal contracts, written between the Project
promoter, the host country government, creditors, input
suppliers, contractors, operators, and service providers.
The appropriate legal
structure for a project depends on a variety of business,
legal, accounting, tax, and regulatory factors. Boyadjian
and Associates has the experience and skills to advice our
prestigious clients on the Legal Form of the Company, the
Construction Contract, the Feedstock Supply Agreements,
the Product Offtake deal, Operations Maintenance and
Management Agreements, and the Loan and Security
Agreement.
As an independent
Project Finance Advisor, Boyadjian and Associates:
-
Negotiate
and finalize all project agreements, and contracts with
foreign partners, off-takers, equipment providers, O&M ,
insurance providers etc.
-
Provide
in-depth research of all government regulations,
incentives and restrictions.
-
Write
the Project "Book" or "Project Memorandum" for financing.
|
|
Topˆˆˆ
|
|
The benefit
to our clients |
|
|
|
Boyadjian & Associates
is the leading Lebanese Project Finance advisory. Our
Project Finance team structures and arranges limited
recourse finance, finding innovative solutions and testing
the boundaries of what can be done.
Why use the independent
adviser Boyadjian and Associates? The answer is that we
provide the right independent range of skills. Our advice
is never influenced by an interest in particular types of
funding. We know how to get the right financing terms and
how to close them.
Ultimately, Boyadjian
and Associates has either the in-house expertise to cover
all development tasks, or the capability of forming a team
by taking on partners, consultants or additional personnel
to cover client's particular needs. We have:
-
Knowledge
of the project development process, including knowledge of
all key project contracts.
-
Sound
business practices, management skills and the ability to
conduct business in the entire
Middle
East and Gulf region.
-
Technical
expertise related to Project engineering, Project
Management and plant operations.
-
Financial
expertise, including knowledge of international business.
-
Ability
to make critical connections and develop relationships
with key foreign parties.
|
|
Topˆˆˆ
|
|
|
|
|
With a fully integrated
service offering, we assist our Clients in obtaining
financing for their Projects.
|
|
|
|
|
|