Different loan equity ratios and financing terms are possible. The financial conditions assumed here are shown below:
Financing Conditions
| • Loan | : 60% of project cost including capitalized interest |
| • Equity | : 40% of project cost |
| • Repayment Period | : seven(7) including one(1) year grace period when interest is capitalized |
| • Interest Rate | : 9% per Annum |
| • Desired Return of Equity | : 22% |
| • WACC | : 14.2% |
The debt service schedule is shown in Table 3-26 and assumes that the loan proceeds are obtained at the beginning of the year and interest payments are due at the end of the year.
[Access: Table 3-25: Water Supply Income Statement, Cashflow and Balance Sheet in '000 Pesos - PDF]
Table 3-26: Debt Service
| Year | Principal repayment | Interest payment | Total debt service | Principal outstanding |
| 2013 | - | - | - | - |
| 2014 | - | - | - | - |
| 2015 | - | 8,547,930 | 8,547,930 | 94,977,000 |
| 2016 | 13,568,143 | 7,632,080 | 21,200,223 | 81,408,857 |
| 2017 | 13,568,143 | 6,410,948 | 19,979,090 | 67,840,714 |
| 2018 | 13,568,143 | 5,189,815 | 18,757,958 | 54,272,571 |
| 2019 | 13,568,143 | 3,968,682 | 17,536,825 | 40,704,429 |
| 2020 | 13,568,143 | 2,747,549 | 16,315,692 | 27,136,286 |
| 2021 | 13,568,143 | 1,526,416 | 15,094,559 | 13,568,143 |
| 2022 | 13,568,143 | 305,283 | 13,873,426 | 0 |
Table 3-27: Summary of Results of the Financial Analysis
| Concession period (years) | ||||
| 5 | 10 | 15 | 20 | |
| 1 Debt amortization | ||||
| 1a Repayment starts in year: | 2 | 2 | 2 | 2 |
| 1b Number of yearly installments | 7 | 7 | 7 | 7 |
| 1c Tenor of debt (years) | 8 | 8 | 8 | 8 |
| 2 Debt service coverage ratio | ||||
| 2a Minimum DSCR | 1.32 | 1.32 | 1.32 | 1.32 |
| 2b Average DSCR | 1.53 | 1.69 | 1.69 | 1.69 |
| 3a Project IRR (post tax) | -2.42% | 12.51% | 16.39% | 17.75% |
| 3b Project NPV@14.2% (PhP million) | -49,667,155.56 | -8,865,697.23 | 15,551,145.49 | 29,970,447.25 |
| 3c Equity IRR (post tax) | -1.85% | 18.54% | 23.54% | 24.80% |
| 3d Equity NPV@15% (PhP million) | -19,558,883.15 | -5,714,157.98 | 3,560,430.67 | 7,496,183.75 |
| 4 Debt-equity gearing | 0% | 0% | 0% | 0% |
| Loan coverage ratios | ||||
| LLCR | 3.16 | 0.02 | 1.26 | 1.32 |
| PLCR | 0.88 | 1.36 | 2.13 | 2.99 |