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Biomass Energy Series – Integrated Cogeneration (CHP) Power Plant and Pellet Plant

October 8th, 2013 Posted in combined heat & power

Biomass Energy Series – Integrated Cogeneration (CHP) Power Plant and Pellet Plant

A new project finance model for an integrated cogeneration CHP power plant and a wood pellet plant is available now (see below for snipet of the model).

You can order via email

mars_ocampo@yahoo.com

or

energydataexpert@gmail.com

Once you have confirmed your order and explain why you need the model and for what purpose you will be using it, I will confirm the price, and once agreed mutually, you may remit the payment to my bank account which details I will email to the buyer.

The integrated cogeneration CHP power plant takes in pellets as fuel and converts the heat in the boiler into power which provides both electricity to the entire plant and surplus to the grid, and also provides heat/process steam to convert the woodchips into wooden pellets that will used in the biomass cogeneration power (CHP) power plant to produce steam to run a back-pressure and condensing turbine.

Here are some few columns of the model. Please order now to avail of my generous discounts.

Thanks.

 

years 30 0 0 1 1 1 1 1
Parameters Units Value Total 0 0 1 2 3 4 5
CHP   Congeneration Plant (Power + Pellets)
Operating   Period Calculations
Calendar Year 2008 2009 2010 2011 2012 2013 2014
Net Electrical Output Year 0 0 1 2 3 4 5
Annual woodchip production tonnes/yr 262,800 30 0 0 262,800 262,800 262,800 262,800 262,800
Annual pellet production tonnes/yr 87,600 10 0 0 87,600 87,600 87,600 87,600 87,600
Net electrical power output kW 14,000 14 0 0 14,000 14,000 14,000 14,000 14,000
  Gross plant heat rate   (power plant) Btu/kWh 12,500 0 0 12,500 12,500 12,500 12,500 12,500
Annual Domestic pellet sales tonnes/yr 5,000 0 0 5,000 5,000 5,000 5,000 5,000
  Rate (domestic pellet   price) $/tonne 180.0000 0.0000 0.0000 180.0000 180.0000 180.0000 180.0000 180.0000
Annual Export pellet sales tonnes/yr 25,000 0 0 25,000 25,000 25,000 25,000 25,000
  Rate (export pellet   price) $/tonne 180.0000 0.0000 0.0000 180.0000 180.0000 180.0000 180.0000 180.0000
Annual Woodchip sales tonnes/yr 0 0 0 0 0 0 0 0
  Rate (woodchip price) $/tonne 50.0000 0.0000 0.0000 50.0000 50.0000 50.0000 50.0000 50.0000
Annual power generation MWh/yr 0 0 122,640 122,640 122,640 122,640 122,640
  Electricity tariff   (selling price) $/kWh 0.2500 0.0000 0.0000 0.2500 0.2500 0.2500 0.2500 0.2500
NSP intensity factor tCO2e/kWh 0.8000 0.0000 0.0000 0.8000 0.8000 0.8000 0.8000 0.8000
Annual carbon credits tCO2e/yr 0 0 98,112 98,112 98,112 98,112 98,112
  Rate (carbon credit   price) $/tonne 5.0000 0.0000 0.0000 5.0000 5.0000 5.0000 5.0000 5.0000
Initial availability of plant on an annual basis (50% up to   year 1) % 100.00% 1 0.00% 0.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Operating hours h/yr 8760 0 0 8760 8760 8760 8760 8760
Exchange Rate and Escalation Year 0 0 1 2 3 4 5
Projected Exchange Rate PhP/US$ 44.000           44.000           44.000           44.000           44.000           44.000           44.000           44.000
Escalation Factors (CPI)
  Annual Escalation   (electricity tariff) % p.a. 2.00% 0.000 0.000 1.000 1.020 1.040 1.061 1.082
  Annual Escalation   (domestic pellet price) % p.a. 2.00% 0.000 0.000 1.000 1.020 1.040 1.061 1.082
  Annual Escalation   (export pellet price) % p.a. 2.00% 0.000 0.000 1.000 1.020 1.040 1.061 1.082
  Annual Escalation   (woodchip price) % p.a. 2.00% 0.000 0.000 1.000 1.020 1.040 1.061 1.082
  Annual Escalation   (wood cost) % p.a. 2.00% 0.000 0.000 1.000 1.020 1.040 1.061 1.082
  Annual Escalation   (O&M costs) % p.a. 2.00% 0.000 0.000 1.000 1.020 1.040 1.061 1.082
Revenue Year 0 0 1 2 3 4 5
Annual power generation MWh/yr                    –                    –         122,640         122,640         122,640         122,640         122,640
  Electricity tariff   (selling price) PhP/kWh                    –                    –             11.00             11.22             11.44             11.67             11.91
  Total electrical   power revenue PhP 000   30,660,000                    –                    –      1,349,040      1,376,021      1,403,541      1,431,612      1,460,244
Annual Domestic pellet sales tonnes/yr                    –                    –             5,000             5,000             5,000             5,000             5,000
  Rate (domestic pellet   price) PhP/tonne                    –                    –        7,920.00        8,078.40        8,239.97        8,404.77        8,572.86
  Total domestic pellet   sales PhP 000        900,000                    –                    –           39,600           40,392           41,200           42,024           42,864
Annual Export pellet sales tonnes/yr                    –                    –           25,000           25,000           25,000           25,000           25,000
  Rate (export pellet   price) PhP/tonne                    –                    –        7,920.00        8,078.40        8,239.97        8,404.77        8,572.86
  Total export pellet   sales PhP 000     4,500,000                    –                    –         198,000         201,960         205,999         210,119         214,322
Annual Woodchip sales tonnes/yr                    –                    –                    –                    –                    –                    –                    –
  Rate (woodchip price) PhP/tonne                    –                    –        2,200.00        2,244.00        2,288.88        2,334.66        2,381.35
  Total woodchip sales PhP 000                  –                    –                    –                    –                    –                    –                    –                    –
Annual carbon credits tCO2e/yr                    –                    –           98,112           98,112           98,112           98,112           98,112
  Rate (carbon credit price) PhP/tonne                    –                    –              5.00              5.00              5.00              5.00              5.00
  Total carbon credicts PhP 000         11,149                    –                    –               491               491               491               491               491
DSRF Income (not implemented) PhP 000
Revenues (power, pellet, woodchip) PhP 000   36,071,149                    –                    –      1,587,131      1,618,863      1,651,231      1,684,246      1,717,921
$                    –                    –     36,071,149     36,792,349     37,527,973     38,278,310     39,043,653
Operating Expenses Overhaul cycle (5 years) 0 0 0 0 0 0 1
Gross plant heat rate (power plant) Btu/kWh                    –                    –           12,500           12,500           12,500           12,500           12,500
Normal degradation of heat rate % p.a. 0.50% 0.000 0.000 1.000 1.005 1.010 1.015 0.997
Overhaul recovery of heat rate (recovery, cycle years) 2.25% 90.00% 5
Actual gross plant heat rate with overhaul Btu/kWh                    –                    –           12,500           12,563           12,625           12,688           12,465
Annual power generation MWh/yr                    –                    –         122,640         122,640         122,640         122,640         122,640
Annual heat requirement MMBtu/yr                    –                    –      1,533,000      1,540,665      1,548,368      1,556,110      1,528,703
Woodchip requirement, million lbs MMlb/yr 6,000 Btu/lb                    –                    –               256               257               258               259               255
Woodchip requirement, tonnes (1,000 kgs) tonnes/yr 2.20462 lb/kg                    –                    –         115,893         116,472         117,055         117,640         115,568
  Rate (woodchip price) PhP/tonne 40.00 $/tonne                    –                    –        1,760.00        1,795.20        1,831.10        1,867.73        1,905.08
  Total woodchip cost   (power) PhP 000                    –                    –         203,972         209,091         214,340         219,719         220,167
Annual wood requirements to make wood chips tonnes/yr 0.48% of pellet                    –                    –               417               417               417               417               417
  Rate (fuel wood   price) PhP/tonne 35.00 $/tonne                    –                    –        1,540.00        1,570.80        1,602.22        1,634.26        1,666.95
  Total fuel wood cost PhP 000                    –                    –               642               655               668               682               695
Annual woodchip fuel requirement tonnes/yr 240.00% of pellet                    –                    –         210,240         210,240         210,240         210,240         210,240
  Rate (woodchip fuel   price) PhP/tonne 40.00 $/tonne                    –                    –        1,760.00        1,795.20        1,831.10        1,867.73        1,905.08
  Total woodchip cost   (fuel) PhP 000                    –                    –         370,022         377,423         384,971         392,671         400,524
Annual electricity requirement MWh/yr 78.800  kWh/tonne                    –                    –      6,902,880      6,902,880      6,902,880      6,902,880      6,902,880
  Electricity tariff   (selling price) PhP/kWh                    –                    –             11.00             11.22             11.44             11.67             11.91
  Total electricity   requirement PhP 000                    –                    –           75,932           77,450           78,999           80,579           82,191
Water PhP 000 0.000 $ per month                    –                    –                    –                    –                    –                    –                    –
Communications PhP 000 166.667 $ per month                    –                    –                 88                 90                 92                 93                 95
Manpower and management (12 months) PhP 000
  Manager (1) PhP 000 4,166.667 $ per month                    –                    –             2,200             2,244             2,289             2,335             2,381
  Operators (21) PhP 000 52,500.000 $ per month                    –                    –           27,720           28,274           28,840           29,417           30,005
  Consultants (2) PhP 000 0.000 $ per month                    –                    –                    –                    –                    –                    –                    –
  Security (2) PhP 000 0.000 $ per month                    –                    –                    –                    –                    –                    –                    –
O&M contract PhP 000 4,166.667 $ per month                    –                    –             2,200             2,244             2,289             2,335             2,381
General supplies PhP 000 8,333.333 $ per month                    –                    –             4,400             4,488             4,578             4,669             4,763
Insurance PhP 000 1,250.000 $ per month                    –                    –               660               673               687               700               714
Property taxes, permits & licenses PhP 000 833.333 $ per month                    –                    –               440               449               458               467               476
Miscellaneous PhP 000 2,500.000 $ per month                    –                    –             1,320             1,346             1,373             1,401             1,429
DSRF Expense (not implemented) PhP 000
Total O&M Costs PhP 000                    –                    –         689,596         704,428         719,583         735,068         745,822
Total O&M Costs $                    –                    –     15,672,640     16,009,734     16,354,165     16,706,092     16,950,505
Operating Gross Margin (Revenues – Total O&M Costs) $                    –                    –     20,398,510     20,782,615     21,173,808     21,572,218     22,093,148
Interest on debt $                    –                    –         222,359         220,224         217,925         215,448         212,780
Depreciation $                    –                    –         200,000         200,000         200,000         200,000         200,000
Amortization of capital additions $                    –                    –                    –                    –                    –                    –                    –
Total Expenses $                    –                    –     16,094,998     16,429,959     16,772,089     17,121,540     17,363,285
Net income before corporate tax $                    –                    –     19,976,151     20,362,391     20,755,884     21,156,770     21,680,368
Corporate tax $ 40% 0                    –                    –      7,990,460      8,144,956      8,302,353      8,462,708      8,672,147
Net income after corporate tax $                    –                    –     11,985,691     12,217,434     12,453,530     12,694,062     13,008,221
Retained earnings – beginning $     11,985,691     11,985,691     12,217,434     12,453,530     12,694,062
Dividends $     11,985,691     11,985,691     12,217,434     12,453,530     12,694,062
Retained earnings – ending $     11,985,691     12,217,434     12,453,530     12,694,062     13,008,221
Net Cashflow and Returns Year 0 0 1 2 3 4 5
Net profit after tax $     11,985,691     12,217,434     12,453,530     12,694,062     13,008,221
Addback:
  Depreciation &   Amortization $         200,000         200,000         200,000         200,000         200,000
  Working Capital $
  Salvage Value $
Add:
  DSRF Income $
Less:
  Principal Repayment $           27,674           29,809           32,108           34,585           37,253
NET CASH FLOW $     12,158,016     12,387,625     12,621,422     12,859,477     13,170,968
Return on Equity (ROE) – based on net cash flow
Equity Investment by Shareholders (Equity Portion of Project   Cost) $ 10.00%     (1,275,000)
Annual Dividends Payable $     12,158,016     12,387,625     12,621,422     12,859,477     13,170,968
Net Cash Flow to Shareholders $    121,411,638 NPV     (1,275,000)     12,158,016     12,387,625     12,621,422     12,859,477     13,170,968
Equity Payback Period years 0.10 PAY     (1,275,000)     10,883,016     23,270,641     35,892,063     48,751,540     61,922,508
Equity Internal Rate of Return – Nominal % 955.5% IRR 0.10
942.0% using dividends
Return on Investment (ROI) – based on net cash flow
Uses of Funds During Construction (Project Cost) $ 10.00%     (4,250,000)
Annual Dividends Payable $     12,158,016     12,387,625     12,621,422     12,859,477     13,170,968
Net Project Cash Flow $    112,310,753 NPV     (4,250,000)     12,158,016     12,387,625     12,621,422     12,859,477     13,170,968
Project Payback Period years 0.35 PAY     (4,250,000)      7,908,016     20,295,641     32,917,063     45,776,540     58,947,508
Project Internal Rate of Return – Nominal % 288.0% IRR 0.35
284.0% using dividends
Balance Sheet Accounts Year 0 0 1 2 3 4 5
Receivables
  Revenues $     36,071,149     36,792,349     37,527,973     38,278,310     39,043,653
  Receivables $ 30 days      2,964,752      3,024,029      3,084,491      3,146,162      3,209,067
  (Increase) Decrease   in Receivables $     (2,964,752)          (59,277)          (60,462)          (61,671)          (62,905)
Stocks & Inventories
  Fuel Wood $
  Woodchip $
  Total Stocks &   Inventories $                    –                    –                    –                    –                    –
  Stocks &   Inventories $ 30 days                    –                    –                    –                    –                    –
  Increase (Decrease)   in Stocks & Inventories $                    –                    –                    –                    –                    –
Payables
  Total expenses net of   stocks & inventories $     15,672,640     16,009,734     16,354,165     16,706,092     16,950,505
  Payables $ 30 days      1,288,162      1,315,869      1,344,178      1,373,103      1,393,192
  Increase (Decrease)   in Accounts Payable $      1,288,162          (27,706)          (28,309)          (28,926)          (20,089)
Capital cost
  Non-depreciable $           250,000         250,000
  Depreciable $        4,000,000      4,000,000
  Total capital cost $        4,250,000
Financing of capital cost
  Debt $        2,975,000 70% 7.50% 50%      2,975,000
  Equity $        1,275,000 30% 10.00% 50%      1,275,000
  Total capital cost $        4,250,000 100% 8.25% 100%
Working Capital Needs (WCN)
  Receivables (+) $ 30 days      2,964,752      3,024,029      3,084,491      3,146,162      3,209,067
  Stocks &   Inventories (+) $ 30 days                    –                    –                    –                    –                    –
  Suppliers (Payables)   (-) $ 30 days      1,288,162          (27,706)          (28,309)          (28,926)          (20,089)
  WCN $      1,676,590      3,051,735      3,112,800      3,175,088      3,229,156
Loan Repayment Schedule (Principal + Interest) Period (month) 1 2 3 4 5 6 7
Loan #1 30 years
4 quarters
120 periods
7.50% p.a.
1.88% per quarter
2.10% CRF
70% $2,975,000 AMT
$62,508.27 PMT
5632
Beginning Balance      2,975,000        2,968,273        2,961,420        2,954,438        2,947,326        2,940,080        2,932,698
Interest           55,781           55,655           55,527           55,396           55,262           55,126           54,988
Principal             6,727             6,853             6,982             7,113             7,246             7,382             7,520
Ending Balance      2,968,273        2,961,420        2,954,438        2,947,326        2,940,080        2,932,698        2,925,178
Loan #2 1 years
4 quarters
4 periods
7.50% p.a.
1.88% per quarter
26.18% CRF
$100,000 AMT
$26,182.76 PMT
Beginning Balance
Interest
Principal
Ending Balance
Year 1 1 1 1 2 2 2
Beginning Balance        2,975,000        2,968,273        2,961,420        2,954,438        2,947,326        2,940,080        2,932,698
Interest           55,781           55,655           55,527           55,396           55,262           55,126           54,988
Principal             6,727             6,853             6,982             7,113             7,246             7,382             7,520
Ending Balance        2,968,273        2,961,420        2,954,438        2,947,326        2,940,080        2,932,698        2,925,178
Interest         222,359
Principal           27,674
Loan Repayment Schedule
Beginning  Balance $      2,975,000      2,947,326      2,917,517      2,885,408      2,850,823
  Interest $         222,359         220,224         217,925         215,448         212,780
  Principal $           27,674           29,809           32,108           34,585           37,253
Ending  Balance $      2,975,000      2,947,326      2,917,517      2,885,408      2,850,823      2,813,570
Annual debt service (principal + interest) $         250,033         250,033         250,033         250,033         250,033
Debt Service Reserve Fund (DSRF) 6 months         125,017         125,017         125,017         125,017         125,017
DSRF Income 4.00% DSRF Income             5,001             5,001             5,001             5,001             5,001
Withholding Tax on Forex Fund 7.50% WhTax
DSRF Expense 0.30% DSRF Expense               375               375               375               375               375
Depreciation Schedule
Beginning Balance $        4,000,000      4,000,000      3,800,000      3,600,000      3,400,000      3,200,000
  Depreciation $ 20 0         200,000         200,000         200,000         200,000         200,000
Ending Balance $ 0%        200,000      4,000,000      3,800,000      3,600,000      3,400,000      3,200,000      3,000,000
Capital Additions Depreciation Schedule
Beginning Balance $           100,000
  Depreciation $ 14 7
Ending Balance $ 0%           7,143
Balance Sheet (before dividends payment) Year 0 0 1 2 3 4 5
ASSETS
Cash     18,471,887     18,996,747     19,525,979     20,059,534     20,703,063
Accounts Receivable (customers)      2,964,752      3,024,029      3,084,491      3,146,162      3,209,067
Stocks (inventories)                    –                    –                    –                    –                    –
Land
Fixed Assets
  Non-depreciable         250,000         250,000         250,000         250,000         250,000         250,000
  Depreciable      4,000,000      4,000,000      4,000,000      4,000,000      4,000,000      4,000,000
  Less: Accumulated   Depreciation         200,000         400,000         600,000         800,000      1,000,000
  Net Fixed Assets      4,000,000      3,800,000      3,600,000      3,400,000      3,200,000      3,000,000
TOTAL ASSETS      4,250,000     25,486,639     25,870,776     26,260,470     26,655,696     27,162,130
LIABILITIES
Accounts Payable (suppliers)      1,288,162      1,315,869      1,344,178      1,373,103      1,393,192
Corporate Taxes      7,990,460      8,144,956      8,302,353      8,462,708      8,672,147
  Total Short-term   Liabilities      9,278,622      9,460,825      9,646,531      9,835,811     10,065,339
Shareholder’s Advances
Long-term Debt (ending balance)      2,975,000      2,947,326      2,917,517      2,885,408      2,850,823      2,813,570
TOTAL LIABILITIES      2,975,000     12,225,948     12,378,341     12,531,940     12,686,634     12,878,909
EQUITY
Subsidy
Capital      1,275,000      1,275,000      1,275,000      1,275,000      1,275,000      1,275,000
Retained Earnings     11,985,691     12,217,434     12,453,530     12,694,062     13,008,221
Total Equity      1,275,000     13,260,691     13,492,434     13,728,530     13,969,062     14,283,221
TOTAL LIABILITIES &   EQUITY      4,250,000     25,486,639     25,870,776     26,260,470     26,655,696     27,162,130
Variance                   –                   –                   –                   –                   –                   –
Returns and Financial Ratios Year 0 0 1 2 3 4 5
  Earnings Before Tax and Interest     20,198,510     20,582,615     20,973,808     21,372,218     21,893,148
  Interest on Long-Term Debt         222,359         220,224         217,925         215,448         212,780
  Earnings Before Tax (Net Profit Before Tax)     19,976,151     20,362,391     20,755,884     21,156,770     21,680,368
  Corporate tax (Income Tax)      7,990,460      8,144,956      8,302,353      8,462,708      8,672,147
  Earnings After Tax (Net Profit After Tax)     11,985,691     12,217,434     12,453,530     12,694,062     13,008,221
  Total Sales     36,071,149     36,792,349     37,527,973     38,278,310     39,043,653
    Total Assets     25,486,639     25,870,776     26,260,470     26,655,696     27,162,130
  Total Investment (Net Debt + Equity)      4,222,326      4,192,517      4,160,408      4,125,823      4,088,570
  Total Owner’s Equity      1,275,000      1,275,000      1,275,000      1,275,000      1,275,000
  Net Profit to Sales = Earnings After Tax /   Total Sales (preferably >   interest rate) 7.50% 33.23% 33.21% 33.18% 33.16% 33.32%
  Gross Profit to Assets = Earnings Before   Tax / Total Assets (preferably >   interest rate) 7.50% 78.38% 78.71% 79.04% 79.37% 79.82%
  Net Profit to Assets = Earnings After Tax /   Total Assets (preferably >   interest rate) 7.50% 47.03% 47.22% 47.42% 47.62% 47.89%
  Return on Investment (ROI) = Net Profit   Before Tax / Total Investment (preferably >   interest rate) 7.50% 473.11% 485.68% 498.89% 512.79% 530.27%
  Return on Investment (ROI) = Net Profit   After Tax / Total Investment (preferably >   interest rate) 7.50% 283.86% 291.41% 299.33% 307.67% 318.16%
  Return on Owners’ Equity (ROE) = Net Profit   After Tax / Total Owners’ Equity (preferably >   interest rate) 7.50% 940.05% 958.23% 976.75% 995.61% 1020.25%
  CURRENT RATIO
Current Assets (cash, receivables)     21,436,639     22,020,776     22,610,470     23,205,696     23,912,130
Current Liabilities (payables)      1,288,162      1,315,869      1,344,178      1,373,103      1,393,192
Current Ratio = Current Assets / Current Liabilities (preferably > 2.00) 2.00 16.64 16.73 16.82 16.90 17.16
  TOTAL LIABILITIES TO TOTAL EQUITY RATIO
Total Liabilities     12,225,948     12,378,341     12,531,940     12,686,634     12,878,909
Total Owners’ Equity     13,260,691     13,492,434     13,728,530     13,969,062     14,283,221
Total Liabilities to Total Equity Ratio = Total Liabilities /   Total Owner’s Equity (preferably < 4.00 ( = 80 / 20) ) 4.00 0.92 0.92 0.91 0.91 0.90
  RETURN ON ASSETS:
Profit Before Interest and Income tax (Income Before Tax)     20,198,510     20,582,615     20,973,808     21,372,218     21,893,148
Total Assets     25,486,639     25,870,776     26,260,470     26,655,696     27,162,130
Return on Assts = Profit Before Tax / Total Assets (preferably > interest rate) 7.50% 79.25% 79.56% 79.87% 80.18% 80.60%
Statement of Cash Flows Year 0 0 1 2 3 4 5
Cash from Operations
Net Income After Tax     11,985,691     12,217,434     12,453,530     12,694,062     13,008,221
Depreciation and Amortization         200,000         200,000         200,000         200,000         200,000
Total cash from operations     12,185,691     12,417,434     12,653,530     12,894,062     13,208,221
Cash from Financing
Bank Loan
Accounts Payable (suppliers)      1,288,162           27,706           28,309           28,926           20,089
Corporate Tax Payable      7,990,460         154,496         157,397         160,354         209,439
Stockholder’s Advances
Debt      2,975,000
Capital Addition Debt
Subsidy
Capital      1,275,000
Total cash from financing
    13,528,622         182,202         185,707         189,280         229,528
Cash Used
Accounts Receivable (customers)      2,964,752           59,277           60,462           61,671           62,905
Stocks (inventories)                    –                    –                    –                    –                    –
Land (non-depreciable)         250,000
Building & Equipment      4,000,000                    –                    –                    –                    –
Debt Repayment           27,674           29,809           32,108           34,585           37,253
Dividends     11,985,691     12,217,434     12,453,530     12,694,062
Total Cash Used      7,242,426     12,074,776     12,310,005     12,549,787     12,794,220
Net Cash Provided (Used)     18,471,887         524,860         529,232         533,555         643,529
Cash – Begininng                    –     18,471,887     18,996,747     19,525,979     20,059,534
Cash – Ending 0     18,471,887     18,996,747     19,525,979     20,059,534     20,703,063
Variance                    –                    –                    –                    –                    –
Cashflow for Debt Service and Dividends Payable Year 0 0 1 2 3 4 5
Operating gross margin     20,398,510     20,782,615     21,173,808     21,572,218     22,093,148
 – Income tax     (7,990,460)     (8,144,956)     (8,302,353)     (8,462,708)     (8,672,147)
 – Increase in working   capital needs (WCN)      1,676,590      1,375,145           61,065           62,288           54,068
 + DSRF Income
Cash flow available for debt service (CFD)     26,712,380     27,552,426     29,415,097     29,972,638     30,711,227
Annual debt service (DS)         250,033         250,033         250,033         250,033         250,033
CF available for dividends (CFDiv = CFD-DS)     26,462,347     27,302,392     29,165,064     29,722,605     30,461,194
Accumulated CFDiv 0     26,462,347     53,764,739     82,929,803   112,652,408   143,113,602
Current year profit after tax     11,985,691     12,217,434     12,453,530     12,694,062     13,008,221
Accumulated profit: limit for dividend payable 0     11,985,691     24,203,125     36,656,655     49,350,717     62,358,938
Accumulated dividend payable     11,985,691     24,203,125     36,656,655     49,350,717     62,358,938
    11,985,691     24,203,125     36,656,655     49,350,717     62,358,938
Annual Dividends Payable     11,985,691     12,217,434     12,453,530     12,694,062     13,008,221
Equity Internal Rate of Return (based on dividends) Year 0 0 1 2 3 4 5
Equity Investment by Shareholders (Equity Portion of Project   Cost) $ 10.00%     (1,275,000)
Annual Dividends Payable $     11,985,691     12,217,434     12,453,530     12,694,062     13,008,221
Net Cash Flow to Shareholders $    120,313,225 NPV     (1,275,000)     11,985,691     12,217,434     12,453,530     12,694,062     13,008,221
Equity Payback Period years 0.11 PAY     (1,275,000)     10,710,691     22,928,125     35,381,655     48,075,717     61,083,938
Equity Internal Rate of Return – Nominal % 942.0% IRR 0.11
Project Internal Rate of Return (based on dividends) Year 0 0 1 2 3 4 5
Uses of Funds During Construction (Project Cost) $ 10.00%     (4,250,000)
Annual Dividends Payable $     11,985,691     12,217,434     12,453,530     12,694,062     13,008,221
Net Project Cash Flow $    117,608,679 NPV     (4,250,000)     11,985,691     12,217,434     12,453,530     12,694,062     13,008,221
Project Payback Period years 0.35 PAY     (4,250,000)      7,735,691     19,953,125     32,406,655     45,100,717     58,108,938
Project Internal Rate of Return – Nominal % 284.0% IRR 0.35

 

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