Hybrid Diesel Power Plant Feed-In Tariff, Levelized Cost and Financial Model

November 26th, 2009 Posted in financial models

Hybrid Diesel Power Plant Feed-In Tariff, Levelized Cost and Financial Model

The following is a snippet of my state-of-the-art project finance model for calculating feed-in tariff, levelized cost of energy, and financial model (generation, fuel requirement, income statement, cash flow statement, balance sheet and financial ratios). To secure a copy of the spreadsheet, click the ENERGY DATA page for arrangements.

*PROJECT FINANCE MODEL*				*Name*	*DIESEL POWER PLANT*
*TEMPLATE FOR FEED-IN TARIFF (BIOMASS, BIOGAS, LANDFILL GAS, SOLAR, WIND, MINI-HYDRO)*					(C) Copyright 2009 by Marcial T. Ocampo (November 2009)
INSTRUCTIONS
(This example is in PhP Thousand, except for the unit prices which are in PhP/kWh)
Year 0 reflects the starting assumptions, which will be applicable starting in year 1.			8.0333	NPV	IRR	Payback
Blue cells must be filled out by the user.		NPV-ROI	0	(723,671)	2.15%	16.21
Escalate fuel, lubes, tariff and O&M costs? (1=yes, 0=no)	0	NPV-ROE	1	0	15.00%	8.54
CALCULATION OF GROSS OPERATING MARGIN		NPV-FC	0	(58,095)	12.29%	9.34
		NPV-FC discounted	0	(103,409)	9.62%	10.11
Year		used	0.00	2009	2010	2011
Days Per Year				365	365	365
Hours Per Day	24			24	24	24
Plant Operation	365		Year	0	1	2
Overhaul Cycle				0	1	2
Capacity Degradation
Normal, % p.a.	2.00%			1.0000	1.0200	1.0404
Overhaul, % p.a.	-6.00%				2.00%	2.00%
Overhaul Cycle, yr	5
Recovery, %	60.00%				0.005	0.040
Select Manufacturer/Engine Model:	MW	Heat Rate, kJ / kWh	Efficiency, %	Cost, $/kW	Variable O&M	Fixed O&M
Diesel 1	18.600	9448	38.10%	1300	0.005	0.040
Diesel 2	18.600	9448	38.10%	1300	0.005	0.040
Diesel 3	18.600	9448	38.10%	1300	0.005	0.040
Diesel 4	18.600	9448	38.10%	1300	0.005	0.040
Diesel 5	18.600	9448	38.10%	1300	0.005	0.040
Diesel 6	18.600	9448	38.10%	1300	0.005	0.040
Plant Rated Capacity, MW	18.600	9,448	38.10%	1,300.00	18.600	18.600
Dependable Capacity, MW					18.235	17.878
Plant Availability
Calendar Days	365.25				365	365
Total Period Hours	24				8760	8760
Planned Overhaul, days (3 wks)	21
Regular Maintenance, days (1 wks)	7				7	7
Economic S/D, % of CD	0.30%				1.10	1.10
Deactivated S/D – External, % of CD	0.50%				1.83	1.83
Total Unforced Outage, days					9.92	9.92
Forced Outage – Internal, % of CD	7.00%				25.55	25.55
Total Outage, days	38.29				35.47	35.47
Total Operating Hours	*7,847*				7,909	7,909
Plant Statistics
Outage Rate = FO24/ (FO24+TOH)	7.25%				7.20%	7.20%
Availability = TOH/PH	89.52%				90.28%	90.28%
Equivalent Availability
					89.23%	87.48%
Reliability = 1-OR	92.75%				92.80%	92.80%
Generation and Capacity Factor
Load Factor, % of DC	90.00%				90.00%	90.00%
Potential Generation = DCLFTOH	MWh				129,796	127,251
Rated Generation = RC*PH	MWh				162,936	162,936
Capacity Factor = PG / RG	72.57%				79.66%	78.10%
Plant Heat Rate (liquid fuels only)	1=Cogen	2=Diesel Engine	3=Oil Thermal		2
Diesel Engine (1 / 3)	33.33%	40.00%
Steam Boiler (2 / 3)	66.67%
Boiler Efficiency at 1% cont. BD	90.00%		90.00%
Steam Turbine Efficiency	40.00%		37.00%
Mechanical Drive / Clutch Efficiency	99.00%	99.00%	99.00%
Generator Efficiency	96.00%	96.00%	96.00%
Overall Efficiency=(GT+STBESTE)MEGE	54.49%	38.02%	31.65%
Plant Heat Rate at 100% eff.	3412.12822
Plant Heat Rate, Btu / kWh = 3412/ OE	6,262	8,976	10,781		8,976	8,976
Heat Rate (Efficiency) Degradation
Normal, % p.a.	2.00%			1.0000	1.0200	1.0404
Overhaul, % p.a.	-6.00%				2.00%	2.00%
Overhaul Cycle, yr	5
Recovery, %	60.00%
Actual Plant Heat Rate, Btu/kWh					9,155	9,338
Actual Overall Efficiency, % of fuel GHV					37.27%	36.54%
Net Electricity Sales, MWh
Potential Generation					129,796	127,251
Step-up Transformer Loss (Switchyard), MWh	1.00%				1.00%	1.00%
Generation at Plant Fence					128,498	125,979
Transmission Line Losses, MWh	2.00%				2.00%	2.00%
Net Electricity Sales to Customer					125,928	123,459
Other Losses (non-technical, pilferage), MWh	0.00%				0.00%	0.00%
Electricity sales to the network (MWh)					125,928	123,459
Annual increase of the volume, % p.a.					0.0%	-2.0%
Fuel Consumption
Gross Generation (Potential Generation), MWh					129,796	127,251
Plant Heat Rate, Btu/kWh					9,155	9,338
Total Energy Input to be supplied by fuel, Million Btu					1,188,285	1,188,285
Energy Supplied by each fuel:	GHV, Btu/lb	NHV, Btu/lb	GHV / NHV
Natural Gas (Malampaya Gas) – main fuel	22,129	20,249	1.093		59,414	59,414
Diesel Oil	19,650	18,453	1.065		118,828	118,828
Low Sulfur Fuel Oil (LSFO – 1% S)	18,400	17,449	1.055		950,628	950,628
Bunker Fuel Oil (BFO – 3% S)	19,670	18,565	1.060		59,414	59,414
Fuel Consumption, Million Liters:	kg / Liter	GHV, Btu/Liter
Natural Gas (Malampaya Gas) – main fuel	1.05506	kJ / Btu	GJ (Million kJ)		62,686	62,686
Diesel Oil	0.8448	36,597	Million Liters		3.247	3.247
Low Sulfur Fuel Oil (LSFO – 1% S)	0.9659	39,181	Million Liters		24.262	24.262
Bunker Fuel Oil (BFO – 3% S)	0.8916	38,664	Million Liters		1.537	1.537
Total Million Liters					29.046	29.046
Specific Fuel Consumption, Liters / kWh					0.224	0.228
Fuel Cost, Million PhP:	PhP/Liter 2009	Escalation		$ / Million Btu
Natural Gas (Malampaya Gas) – main fuel, 8.628 $/GJ	418.11	0.00%	PhP / GJ	9.10	26.210	26.210
Diesel Oil	30.00	0.00%	PhP / Liter	16.92	97.408	97.408
Low Sulfur Fuel Oil (LSFO – 1% S)	23.24	0.00%	PhP / Liter	12.24	563.768	563.768
Bunker Fuel Oil (BFO – 3% S)	22.51	0.00%	PhP / Liter	12.01	34.585	34.585
Total Fuel Cost, Million PhP					695.761	695.761
Average fuel cost, PhP/Liter	23.95				23.954	23.954
Average fuel cost escalation, % p.a.		0.00%			0.0%	0.0%
Lube Oil Consumption
Normal, % p.a.	2.00%			1.0000	1.0200	1.0404
Overhaul, % p.a.	-6.00%				2.00%	2.00%
Overhaul Cycle, yr	5
Recovery, %	60.00%
Ideal Lube Oil Consumption, g/kWh	0.254				0.254	0.254
Actual Lube Oil Consumption, g/kWh					0.259	0.264
Lube Oil Consumption, Million Liters	0.8500	kg/Liter			0.039	0.039
Lube Oil Cost, Million PhP	149.87	0.00%			5.917	5.917
Average lube oil cost, PhP/Liter					149.871	149.871
Average lube oil escalation, % p.a.		0.00%			0.0%	0.0%

A) Operating income: ’000 PhP	365		Year	0	1	2
Electric tariff for sales to the network (PhP/kWh)		8.0333			8.0333	8.0333
Annual increase of the tariff, % p.a.		0.00%			0.00%	0.00%
Income from sales to DU, ’000 PhP					708,132	694,247
Electricity sales to DU, MWh	70.00%	of sales			88,150	86,421
Electricity tariff to DU, PhP/kWh	100.00%	8.0333	discount tariff		8.0333	8.0333
Income from sales to NPC, ’000 PhP					202,323	198,356
Electricity sales to NPC, MWh	20.00%	of sales			25,186	24,692
Electricity tariff to NPC, PhP/kWh	100.00%	8.0333	reference tariff		8.0333	8.0333
Income from sales to WESM, ’000 PhP					101,162	99,178
Electricity sales to WESM, MWh	10.00%	of sales			12,593	12,346
Electricity tariff to WESM, PhP/kWh	100.00%	8.0333	WESM tariff		8.0333	8.0333

TOTAL OPERATING INCOME					1,011,617	991,781
Annual increase in Operating Income					0.0%	-2.0%
Total electricity sales to DU, NPC, and WESM, MWh					125,928	123,459
Average Electricity Tariff, PhP/kWh					8.0333	8.0333
Annual increase in Electricity Tariff		0.00%			0.0%	0.0%

B) Expenses: ’000 PhP			Year	0	1	2
Consumption of natural gas fuel, ’000 GJ					63	63
Annual increase of the volume					0.0%	0.0%
Price of natural gas fuel (PhP/GJ)					418.113	418.113
Annual increase of the price					0.0%	0.0%
Total Natural Gas Fuel Cost					26,210	26,210
Consumption volume of fuel, ’000 liters					29,046	29,046
Annual increase of the volume					0.0%	0.0%
Price of liquid fuel (PhP/Liter)					23.954	23.954
Annual increase of the price					0.0%	0.0%
Total Liquid Fuel Costs	Escalation	months	working capital		695,761	695,761
Total Fuel Costs		2	120,329	721,971	721,971	721,971
Annual increase of fuel costs					0.0%	0.0%
Expenses from lube purchase		2	986	5,917	5,917	5,917
Purchase of chemical materials	0.00%	2	1,349	8,093	8,093	7,934
Utilities (electricity, water)	0.00%	2	1,180	7,081	7,081	6,942
DOE 1-04 (0.01 PhP/kWh sold)		2	210	1,259	1,259	1,235
Total Variable O&M			3,725		22,351	22,029
Annual increase of variable O&M		-1.01%			0.0%	-1.4%
Variable O&M, $/kWh	48.46	0.00364			0.00355	0.00357

Maintenance of the installation	0.00%	2	1,686	10,116	10,116	9,918
Personnel expense	0.00%	2	1,686	10,116	10,116	9,918
Land lease, rent	0.00%	2	674	4,046	4,046	3,967
Other services	0.00%	2	506	3,035	3,035	2,975
Total Fixed O&M			4,552		27,314	26,778
Annual increase of fixed O&M		-1.20%			0.0%	-2.0%
Fixed O&M, $/kW/year	48.46	0.02762			0.03030	0.02971

Taxes, Insurances, Benefits & Regulatory Costs	0.00%		0		20,681	21,994
DSRF Expense		0.30%	0		232	219
			total working capital
TOTAL OPERATING EXPENSE			128,606		792,549	792,991
Annual increase		-0.59%				0.1%

GROSS OPERATING MARGIN					219,068	198,790
Annual increase		-3.02%				-9.3%

PROFIT AND LOSS STATEMENTS

In ’000 PhP			Year	0	1	2
Operating income					1,011,617	991,781
Operating expense					792,549	792,991
Operating gross margin					219,068	198,790

- Depreciation & amortization					51,641	51,641
- Interest					82,498	73,814
NET PROFIT BEFORE TAX					84,928	73,335
(Tax rate) and Income Tax Holiday (ITH) years	30%	0			30%	30%
- Income tax					25,478	22,000

NET PROFIT AFTER TAX					59,450	51,334
Percentage of increase						-13.7%

NET CASH FLOW

			Year	0	1	2
Net profit after tax					59,450	51,334

Addback:
Depreciation & Amortization					51,641	51,641
Working Capital
Salvage Value
Add:
DSRF Income	4.00%	DSRF Income			3,097	2,924
Less:
Principal Repayment					72,367	72,367
Profit Sharing	0.00%	of income after tax			0	0
Social Benefit Fund – Host Community	0	per month			0	0

NET CASH FLOW					41,821	33,531
Percentage of increase						-19.8%

Total Initial investment				1,033,816
Project Cash Flow	2.15%	12.90%	WACC	-1,033,816	41,821	33,531
	IRR	NPV	-723,671	-1,033,816	36,366	25,355
		check	-669,950	-1,033,816	37,042	26,307
		cumulative	0	-1,033,816	-991,995	-958,464
		project payback	16.21

Invested capital			30.00%	310,145
Equity Cash Flow	15.00%	15.00%	Equity IRR	-310,145	41,821	33,531
	IRR	NPV	0	-310,145	36,366	25,355
		check	0	-310,145	36,366	25,355
		cumulative	0	-310,145	-268,324	-234,793
		equity payback	8.54

CALCULATION OF CASH FLOW FOR DEBT SERVICE

			Year	0	1	2
Operating gross margin					219,068	198,790
- Income tax					25,478	22,000
- Increase in working capital needs (WCN)					151,378	-1,789
- Profit Sharing					0	0
+ DSRF Income					3,097	2,924
- Social Benefit Fund					0	0

Cash flow available for debt service (CFD)					45,308	181,502

CALCULATION OF DEBT SERVICE COVERAGE RATIO (DSCR)

			Year	0	1	2
Cash flow available for debt service (CFD)					45,308	181,502

Annual debt service (DS)					154,866	146,182

DEBT SERVICE COVERAGE RATIO (DSCR)					0.29	1.24

CALCULATION OF DIVIDENDS PAYABLE

			Year	0	1	2
Cash flow available for debt service (CFD)					45,308	181,502
Annual debt service (DS)					154,866	146,182
CF available for dividends (CFDiv = CFD-DS)					0	35,320
Accumulated CFDiv				0	0	35,320
Current year profit after tax					59,450	51,334
Accumulated profit: limit for dividend payable				0	59,450	110,784
					0	35,320
Accumulated dividend payable				0	0	35,320
Annual dividend payable					0	35,320

CALCULATION OF NPV, IRR AND PAY-BACK ACCORDING TO INVESTED CAPITAL AND DIVIDENDS PAYABLE

			Year	0	1	2
Invested capital				310,145
Annual dividend payable				0	0	35,320
Discount rate to be applied for NPV calculation				15.00%	15%	15%
Discount factor for this rate			1	1.0000	1.1500	1.3225
Discounted dividends				0	0	26,707
Present value of dividends				252,050
NPV of the investment			-58,095

			Year	0	1	2
Investment schedulle	12.29%	15.00%	Equity IRR	-310,145	0	35,320
IRR of Invested Capital	IRR	NPV	-58,095	-310,145	0	26,707
		check	-58,095	-310,145	0	26,707
		cumulative	0	-310,145	-310,145	-274,825
Pay-back term of invested capital, years		equity payback	9.34

BALANCE SHEET ACCOUNTS

Calculation of Working Capital Needs (WCN):
Cash needed for operations (+)	3.00	months of expenses			6,828	6,695
Customers / Receivables (+)	1.00	months of revenue			84,301	82,648
Stocks / Inventory (+)	2.00	months of fuel & chemicals			121,677	121,651
Suppliers / Payables (-)	1.00	months of payables			61,429	61,404
WCN	15.47%	% of operating income			151,378	149,590

CALCULATION OF DEPRECIATION

In ’000 PhP			Year	0	1	2
Initial investment in land (PhP/ha), 1 ha = 10,000 m2	1,000,000	1	ha	1,000
Freight on Board = FOB USA = $/kW	25,021	18.600	MW	465,395
Ocean Freight = FRT = 5% x FOB	5%			23,270
Insurance = INS = 1% x FOB	1%			4,654
Cargo, Insurance & Freight = CIF = FOB + FRT + INS				493,319
Value Added Tax = VAT = 12% x CIF	12%			59,198
Customs Duty = (CIF + VAT) x (% Duty) x (1 + % VAT)	3%			18,565
Duty-Paid Landed Cost = DPLC = CIF + VAT + Duty				571,082
Local Freight Cost = LFC = 3% x CIF	3%			14,800
Delivered Cost at Site = DCS = DPLC + LFC				585,881
Installation Cost = IC = 5% x FOB	5%			23,270
Total EPC = DCS + IC				609,151
Contingency (10%) = EPC x 10%	10%			60,915
Documentary Stamps (1%) = EPC x 1% = DS	1%			6,092
Total Fixed Assets (EPC + Contingency + DS)				676,158
Depreciation term (years)	salvage	0.00%	33,808	20	677,158
Development costs (modeler)		1.00%		6,772
Other Costs including taxes, contingencies		12.00%		81,259
Initial investment in capitalized expenses				216,636	88,031
Amortization term (years)	salvage	0.00%	10,832	20
Working Capital:
Working capital (initial stocks – fuel) – 2 months				120,329
Working capital (initial stocks – lubes) – 2 months				986
Working capital (initial stocks – chemical materials) – 2 months				1,349
Working capital (mobilization – utilities) – 2 months				1,180
Working capital (mobilization – DOE 1-94) – 2 months				210
Working capital (mobilization – maintenance) – 2 months				1,686
Working capital (mobilization – personnel expense) – 2 months				1,686
Working capital (pre-paid expense – advance rent) – 2 months				674
Working capital (pre-paid expense – other services) – 2 months			128,606	506	683,032
Interest During Construction:
Dev’t fees (loan arranger)		1.00%		6,830
Front end fees (loan arranger)		1.00%		6,830
Commitment fees (bank)		0.50%		3,415
Interest During Construction (bank) – 18 months	1.50	12.00%		122,946	140,022
Amortization term (years)	salvage	0.00%	7,001	20
Total Investment (land, fixed, capitalized expenses, working capital)				1,033,816

Depreciation of fixed assets					33,808	33,808
Amortization of capitalized expenses					10,832	10,832
Amortization of capitalized expenses					7,001	7,001

TOTAL DEPRECIATION & AMORTIZATION EXPENSE					51,641	51,641

Evolution of fixed assets and capitalized expenses			Year	0	1	2

Land (non-depreciable)				1,000	1,000	1,000

Gross fixed assets (PPE, Building, Civil Works)				676,158	676,158	676,158
Accumulated depreciation				0	33,808	67,616
Net fixed assets				676,158	642,350	608,542

Gross capitalized expenses (Development Costs, Working Capital)				216,636	216,636	216,636
Accumulated amortization				0	10,832	21,664
Net capitalized expenses				216,636	205,805	194,973

Gross capitalized interest during construction (IDC)				140,022	140,022	140,022
Accumulated amortization				0	7,001	14,002
Net capitalized intereset during construction (IDC)				140,022	133,020	126,019

Total Depreciable Assets (fixed assets, capitalized expenses, IDC)				1,032,816	981,175	929,534

Taxes, Insurances, Benefits & Regulatory Costs			Year	0	1	2

Real Property Tax – Land	1.60%	of land			16	16
Real Property Tax – PPE	1.60%	of fixed assets			10,278	9,737
Real Property Tax – Buildings	0.80%	of building
Land Lease & ROW	0.00	PhP/MT coal
Property Insurance – PPE	0.78%	of fixed assets			5,274	5,274
Property Insurance – Building	0.78%	of building
Business Interruption Insurance	0.56%	of previous year’s revenue			3,786	5,665
Special Education Fund – benefits to host community	1.00%	of land			10	10
SEC Registration & Fees	2,864				2.86	2.86
BIR Registration & Fees	530				0.53	0.53
DENR Permits & Fees	72				0.07	0.07
Discharge Fee (BOD, TSS) – DENR	0				0.00	0.00
EMB Permits & Fees	289				0.29	0.29
NWRB Permits & Fees	17,417				17.42	17.42
PNRI Permits & Fees	5,900				5.90	5.90
ERC Registration & Fess	1,500				1.50	1.50
DOLE Permits & Fees	155				0.16	0.16
DTI Permits & Fees	0				0.00	0.00
LGU Registration & Fees	1,468				1.47	1.47
NTC Registration & Fees	21				0.02	0.02
BOC Registration & Fees	5,000				5.00	5.00
PPA Registration & Fees	1,000				1.00	1.00
ATO Registration & Fees	13,050				13.05	13.05
PDEA Registration & Fees	3,000				3.00	3.00
BOI Registration & Fees	4,500				4.50	4.50
DOE Permits & Fees	800				0.80	0.80
Local Business Taxes (1/2 of 1% of GR)	0.00%	of gross revenue			0	0
National Franchise Taxes (1/2 of 1% of GR)	0.00%	of gross revenue			0	0
DOE 1-94 (PhP 0.01 per kWh sold)	0.01	per kWh sold			1,259	1,235
Total Taxes, Insurances & Regulatory Costs					20,681	21,994

DEBT SERVICE CALCULATION

In ’000 PhP			Year	0	1	2
Total Initial investment				1,033,816
% to be financed by capital		Equity IRR	15.00%	30.00%
% to be financed by non refundable subsidy		Subsidy	0.00%	0.00%
% to be financed by debt		Debt Interest	12.00%	70.00%
Initial amount of capital		WACC	12.90%	310,145
Amount of subsidy				0
Initial amount of debt				723,671
Repayment term (years)			72,367	10

Constant Repayment Method:
Annual repayment					72,367	72,367
Amount of debt at year end				723,671	651,304	578,937
Average amount of debt					687,487	615,120
Reference interest rate (Libor or other)				10.00%	10.00%	10.00%
Spread				2.00%	2.00%	2.00%
Interest rate of debt		1		12.00%	12.00%	12.00%
Interest based on average amount of debt					82,498	73,814

Declining Balance Method:
Beginning Balance					723,671	682,433
Interest based on beginning balance		0	17.70%	12.00%	86,841	81,892
Principal repayment			128,078	10	41,238	46,186
Remaining balance				723,671	682,433	636,247

			Year	0	1	2
Beginning Balance					723,671	651,304
Annual amount of interest					82,498	73,814
Annual amount of principal					72,367	72,367
Annual debt service (principal + interest)					154,866	146,182
Ending Balance				723,671	651,304	578,937

Debt Service Reserve Fund	6	months of debt service			77,433	73,091
DSRF Income -interest on Foreign Currency Deposit	4.00%	DSRF Income			3,097	2,924
Withholding Tax on Foreign Currency Deposit	7.50%	WHTax
DSRF Expense – withholding tax	0.30%	DSRF Expense			232	219

BALANCE SHEET

BALANCE SHEET BEFORE DIVIDEND PAYMENT

In ’000 PhP			Year	0	1	2
Cash needed for operations				0	6,828	6,695
Additional cash (if negative, it would represent additional debt)				0	-112,655	-80,259
Receivables / Customers				0	84,301	82,648
Stocks / Inventory				0	121,677	121,651
Land				1,000	1,000	1,000
Fixed assets (net)				676,158	642,350	608,542
Capitalized expenses (net)				216,636	205,805	194,973
Capitalized IDC (net)				140,022	133,020	126,019
Total assets				1,033,816	1,082,327	1,061,269

Suppliers / Payables				0	61,429	61,404
Debt				723,671	651,304	578,937
Shareholder’s Advances
Current year profit after tax				0	59,450	51,334
Accumulated reserves				0	0	59,450
Subsidy				0	0	0
Capital				310,145	310,145	310,145
Total liabilities and net worth				1,033,816	1,082,327	1,061,269
			variance	-	-	-
BALANCE SHEET AFTER DIVIDEND PAYMENT

			Year	0	1	2
Cash needed for operations				0	6,828	6,695
Additional cash (if negative, it would represent additional debt)				0	-112,655	-115,579
Receivables / Customers				0	84,301	82,648
Stocks / Inventory				0	121,677	121,651
Land				1,000	1,000	1,000
Fixed assets (net)				676,158	642,350	608,542
Capitalized expenses (net)				216,636	205,805	194,973
Capitalized IDC (net)				140,022	133,020	126,019
Total assets				1,033,816	1,082,327	1,025,949

Suppliers / Payables				0	61,429	61,404
Debt				723,671	651,304	578,937
Shareholder’s Advances
Current year profit after tax
Reserves				0	59,450	75,464
Subsidy				0	0	0
Capital				310,145	310,145	310,145
Total liabilities and net worth				1,033,816	1,082,327	1,025,949
			variance	-	-	-
Calculation of Dividends Payable
Gross Margin					219,068	198,790
Income Tax (-)					25,478	22,000
Increase in Working Capital (-)					151,378	-1,789
Profit Sharing (-)					0	0
DSRF Income (+)					3,097	2,924
Social Benefit Fund (-)					0	0
Cash flow available for debt service (CFD)					45,308	181,502
Annual debt service (DS) = Interest + Principal					154,866	146,182
CF available for dividends (CFDiv = CFD-DS)					0	35,320
Accumulated CFDiv				0	0	35,320
Current year profit = Income After Tax					59,450	51,334
Accumulated profit: limit for dividend payable				0	59,450	110,784
Accumulated dividend payable				0	0	35,320
Annual dividend payable	planned	actual		-310,145	0	35,320
Investor 1	60.00%	55.68%		-186,087	0	21,192
Investor 2	20.00%	42.42%		-62,029	0	7,064
Investor 3	20.00%	1.91%		-62,029	0	7,064

CASH FLOW STATEMENT			Year	0	1	2

OPERATIONS
Net Income (after tax)				0	59,450	51,334
Add: Depreciation & Amortization				0	51,641	51,641
(Increase) / Decrease in Receivables				0	-84,301	1,653
(Increase) / Decrease in Inventories				0	-121,677	26
Increase / (Decrease) in Accounts Payable				0	61,429	-25
Net Cash flow from Operations				0	-33,459	104,630

INVESTMENTS
Additions to PP&E		676,158		-676,158	0	0
Additions to Capitalized Expenses		216,636		-216,636	0	0
Additions to Capitalized IDC		140,022		-140,022	0	0
Additions to Land		1,000		-1,000	0	0
Net Cash flow Used for Investments		1,033,816		-1,033,816	0	0

Cash flow before Financing				-1,033,816	-33,459	104,630

FINANCING
Increase (Decrease) in Shareholder Advances				0	0	0
Increase (Decrease) in Long-term Debt		723,671		723,671	-72,367	-72,367
Increase (Decrease) in Subsidy		0		0	0	0
Increase (Decrease) in Capital Stock		310,145		310,145	0	0
Net Cash flow from Financing		1,033,816		1,033,816	-72,367	-72,367

NET CASH FLOW				0	-105,826	32,262

Add: Beginning Cash Balance					0	-105,826
ENDING CASH BALANCE				0.00	-105,826	-73,564

Levelized Price and Generation Cost of Electricity			Year	0	1	2

Discounting Rate, % p.a.	15.00%	48.46		NPV

Electricity sales	MWh	$/kWh	PhP/kWh	744,221	125,928	123,459

TOTAL OPERATING INCOME (levelized price)	000 PhP	0.1658	8.0333	5,978,542	1,011,617	991,781

Total Fuel Costs	000 PhP	0.1245	6.0344	4,490,959	721,971	721,971

Expenses from lube purchase	000 PhP	0.0010	0.0495	36,809	5,917	5,917
Purchase of chemical materials	000 PhP	0.0013	0.0643	47,828	8,093	7,934
Utilities (electricity, water)	000 PhP	0.0012	0.0562	41,850	7,081	6,942
DOE 1-04 (0.01 PhP/kWh sold)	000 PhP	0.0002	0.0100	7,442	1,259	1,235

Maintenance of the installation	000 PhP	0.0017	0.0803	59,785	10,116	9,918
Personnel expense	000 PhP	0.0017	0.0803	59,785	10,116	9,918
Land lease, rent	000 PhP	0.0007	0.0321	23,914	4,046	3,967
Other services	000 PhP	0.0005	0.0241	17,936	3,035	2,975
Taxes, Insurances, Benefits & Regulatory Costs	000 PhP	0.0033	0.1603	119,310	20,681	21,994
DSRF Expense	000 PhP	0.0000	0.0013	945	232	219

- Depreciation & amortization	000 PhP	0.0090	0.4343	323,237	51,641	51,641
- Interest	000 PhP	0.0074	0.3582	266,590	82,498	73,814
- Income tax	000 PhP	0.0040	0.1944	144,645	25,478	22,000

Total Generation Cost		0.1564	7.5798	5,641,036	952,167	940,447

Net Profit		0.0094	0.4535	337,506	59,449.75	51,334.16

Tags: carbon emission credits, CDM, diesel power plant, feed-in tariff, financial ratios, Kyoto Protocol, levelized cost of energy

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