Financial information

Project Cost Estimates:

Project budget costs (full details of the breakdown of the total project budget, including development costs, construction costs and contingencies, O&M mobilisation cost, amongst others, with the timing of the incurrence of the costs included to be set out in the relevant formsheet);

Operating and maintenance costs (breakdown of the O&M costs over the term of the agreement and categorised as either fixed or variable, and then further divided between local and foreign portions)

Financing requirements:

The general financing structure should be outlined, with the debt and shareholder equity proportions;

Financing commitments: Bidders must be required to obtain committed terms for a stated percentage of the equity and debt required for the Project, demonstrated with the use of signed letters of commitment and detailed Term Sheets from the Financiers to be included as part of the submission; and,

Interest rate and foreign exchange hedging strategy.

Financial model: Bidders must be required to submit a detailed financial model for the Project in support of their bids which are to be linked to the relevant form sheets, including:

General requirements - Bidders should be required to take relevant regulations as determined by the Government Entity into consideration, as, for instance, that the model must be capable of generating all calculations, that a given concession period should be assumed, that the model should be supplied both in hard copy and on a CD, amongst other requirements. Moreover, broader modelling guidelines can also be supplied - such as the usage of logical operators instead of complex nested functions, the usage of notes where formulae are complex, flexibility in terms of the ability to run sensitivities, etc.;

Model inputs - Bidders must also be required to provide a summary of the financial and economic assumptions utilised for the model using a given formsheet template (preferably, as an appendix to the RfP) that must be linked to the rest of the model and be fully functional upon submission to enable a detailed evaluation by the Government Entity;

Model outputs - Bidders must be notified of the requisite financial projections that are required to be produced by the model, such as a cash flow statement with ratios, a P&L account, and a balance sheet, etc.; and,

Model sensitivities - Bidders must be notified of the sensitivities that must be run as part of the model, which can include EPC cost overruns, O&M cost overruns, and inflation, for example.