Case Problem Project Finance
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Financial Model for the Bridge Project A COST ESTIMATES B ASSUMPTIONS FOR FINANCIAL MODEL C TRAFFIC AND TOLL RATE PROJECTIONS D PROJECT TIME TABLE E FINANCIAL PLAN F OPERATION AND MAINTENANCE CALCULATIONS G DEPRECIATION SCHEDULE H TERM LOAN REPAYMENT I PROFIT AND LOSS ACCOUNT & WACC J CASHFLOW, NPV, IRR & EIRR FOR THE PROJECT K DEBT SERVICE COVERAGE RATIO L COMMENT ON PROJECT VIABILITY Instructions Above mentioned links are provided to navigate through the financial model Values mentioned in RED color are negative values Values Mentioned in BLUE Color Are Assumptions Made by the modeler
A
B
C
D
E
F
G
COST ESTIMATES Consultant Fees 2% Expert Fees (Deployed By State Govt) 1% Environmental Clearence 5% Pre Operative Expences 3% Contingencies 5% Increase in manpower cost 10% Cost Of Engineers (Rs.) ### cost of supervisior (Rs.) ### Cost of Permenant Staff (Rs.) ### Cost of Administrative Office 0% Cost of Construction Toll Plaza 1% The general Lighting cost of the Bridge is assumed to be covered in the Per Km cost of Bridge Land will be transferred by the state govt to the developer as free of cost. TRAFFIC PROJECTIONS Average Annual Growth Rate 4% Inflation Rate (Every 3rd Year) 10% Bridge Length 2.5 Toll Rates 2-Wheelers 7.5 4-Wheelers 10 S.T. Bus 1000 Advertisement Revenue 1% Inflation rate is also applied to the per annum payment of State Transport Buses FINANCIAL PLAN Interest During Construction is payed back quarterly Moratorium Period is considered as 3 years for both the debts OPERATION AND MAINTENANCE Inflation 4% Operation and Maintenance of Bridge 2% Periodic Re-surfacing 4% Increase in Operations of Toll Plaza 10% Cost of Operating Toll Plazas 5% DEPRECIATION Written Down Value Method 15% Straight line Method 10% PROFIT AND LOSS ACCOUNT Minimum Alternative Tax 0% Corporate Tax 40% Repayment of the principal for Debt Amount is not considered in the Profit and Loss Account CASHFLOW Method of Depreciation considered for preparing the cash flow is Straight line Method WACC is considered as Discounting rate for Project NPV
Cost of Equity is Considered as Discounting rate for Equity NPV
of total construction of total construction of construction cost of total construction of total construction Per Annum Per Annum Per Annum Per Annum of construction cost of construction cost m cost of Bridge
cost cost cost cost
Km. per km perkm per vehicle per annum of Total Vehicular Toll Revenue
every year of Initial Investment every 3rd Year every year of O&M for Bridge
d Loss Account
0
COST ESTIMATES A
Assumptions Consultant Fees 2% of total construction cost Expert Fees (Deployed By State Govt) 1% of total construction cost Environmental Clearence 5% of construction cost Pre Operative Expences 3% of total construction cost Contingencies 5% of total construction cost Increase in manpower cost 10% Per Annum Cost Of Engineers (Rs.) ### Per Annum cost of supervisior (Rs.) ### Per Annum Cost of Permenant Staff (Rs.) ### Per Annum Cost of Administrative Office 0.50% of construction cost Cost of Construction Toll Plaza 1% of construction cost The general Lighting cost of the Bridge is assumed to be covered in the Per Km cost of Bridg Land will be transferred by the state govt to the developer as free of cost.
A
Construction Costs Description Land Cost Site Clearances Bridge Construction Site Office Construction of Toll Plaza Environmental Clearence Total (Bridge Cost)
B
Unit Sqm. Km. L.S. L.S. L.S.
2 1
Length 500 2.5
2
Man Power
Description Engineer Supervisor Permanent staff
Unit Persons Persons Persons
Total (Man Power) C
No
Expert & Consultancy Description Technical Consultancy fees Expert employed by State Govt. Total (Expert & Consultancy)
Period No (Years) 4 1 1 1 2 1
Breadth
Height 20 1
1 1
D E
Pre Operative Expenses Contengencies
(A+B+C +D+E) Total Project Cost (In INR)
Per Km cost of Bridge
Quantity
Rate (Rs.)/Sq.mAmount (Rs.) 0 0 20000 100 2,000,000 2.5 12,000,000 30,000,000 160,000 640,000 1,640,000 32,800,000
Rate / Rate / Amount Annum(INR.) Annum(INR.) Amount (INR) (INR) Year I Year I Year II Year II 500,000.00 550,000 2,000,000 2200000 300,000.00 330,000 300,000 330000 150,000.00 165,000 300,000 330000 2,600,000 ### ###
Amount (INR) 656,000 328,000 984,000
1,177,320 1,962,200
43,570,825
TRAFFIC PROJECTIONS Assumptions Average Annual Growth Rate 4% rd Inflation Rate (Every 3 Year) 10% Bridge Length 2.5 Km. Toll Rates 2-Wheelers 7.5 per km 4-Wheelers 10 perkm S.T. Bus 1000 per vehicle per annum Advertisement Revenue 1% of Total Vehicular Toll Revenue Inflation rate is also applied to the per annum payment of State Transport Buses
Traffic Projection 2-Wheelers 4-Wheelers S.T. Bus Toll Rate Projection 2-Wheelers (Rs) 4-Wheelers (Rs) S.T. Bus (Rs./each)
1 2013
2 2014
3 2015
4 2016
5 2017
6 2018
20000 75000 1000
20800 78000 1040
21632 81120 1082
22497 84365 1125
23397 87740 1170
24333 91250 1217
19 25 1000
19 25 1000
19 25 1000
21 28 1100
21 28 1100
21 28 1100
Toll & Advertizement Revenue Generation (INR) 2-Wheelers 375000 390000 405600 464001 482563 501868 4-Wheelers 1875000 ### ### ### ### ### S.T. Bus 1000000 ### ### ### ### ### Advertisement Revenue 32500 33800 35156 40215 41824 43499 Total Revenue Generation 3282500 ### ### ### ### ###
ansport Buses 7 2019
10 2022
11 2023
12 2024
13 2025
26318 27371 28466 98696 102644 106750 1317 1370 1425
29605 111020 1482
30789 115461 1541
32021 120079 1603
25 33 1331
25 33 1331
25 33 1331
28 37 1464
582038 605314 629533 720190 ### ### ### ### ### ### ### ### 49846 51844 53922 61690 ### ### ### ###
749007 3694191 1972542 64157 6479897
778962 3841965 2051071 66720 6738718
891144 4395192 2346792 76331 7709459
25306 94900 1266
23 30 1210
8 2020
23 30 1210
9 2021
23 30 1210
14 2026
15 2027
33302 124882 1667
34634 129877 1734
28 37 1464
28 37 1464
926795 4570993 2440488 79383 8017659
963864 4753823 2538576 82563 8338826
PROJECT TIME TABLE
Financial Close Operations Period Considered (Months) Construction Schedule Start of Construction Period Construction Period (months) End of Construction Period Operations: Commercial Operations Date Project Period Ends First Financial Year Begins First Financial Year Ends Concession Period: Concession Period Starts Concession Period Ends
31-Dec-10 180 1-Jan-11 24 31-Dec-12 1-Jan-13 31-Dec-27 1-Jan-11 31-Dec-11 1-Jan-13 31-Dec-27
FINANCIAL PLAN Assumptions Interest During Construction is payed back quarterly Moratorium Period is considered as 3 years for both the debts
Contribution 50% 25% 15% 10% 50% 10% 40%
Cost
INTEREST DURING CONSTRUCTION
Q1-1 5446353
Contribution of Equity Contribution of Sub Ordinated Debt Contribution of Senior Debt
5446353
Q1-2 5446353 16339059 5446353
Total Interest During Construction Sub Ordinated Senior Debt by Senior Lender Total Grand TOTAL IDC
5446353
5446353
EQUITY Private operator Authority state government DEBT Sub Ordinated Senior Debt by Senior Lender Total Project Cost
1187305 Senior
Proportion of Total Debt Proportion of Total Debt (Amount in INR)
Prime Lending Rate Interest Rate (During Construction Period) Interest Rate (During Operations Period) Drawdown Starts Repayment (years ) Repayment per year No. of Instalments
6% 10%
Sub-ordinated 40%
10%
0 10% 10% 10% 1-Jan-2012
0
10 1
10
6%
6% 6% 1-Jan-2012 10 1 10
Repayment / Redemption Starts Repayment / Redemption Ends Moratorium Period- 3 years
1-Jan-2016 ###
1-Jan-2016 31-Dec-2025
3
3
Share
Total Equity/Debt 21785412
10892706 6535624 4357082 21785412 4357082 17428330 43570825 ok Q1-3 5446353 10892706 5446353
Q1-4 5446353 5446353 5446353
Q2-1 5446353 0 4357082 1089271
5446353
5446353
5446353 261425 108927 370352
Q2-2 5446353
Q2-3 Q2-4 5446353 5446353
5446353 5446353 5446353
5446353 5446353 5446353
408476 408476
272318 272318
136159 136159
ok
INTEREST ON SENIOR AND SUB-ORDINATED DEBT 2011
2012 0
Interest On Senior Debt Principal Senior Debt (Repayment) Repayment of Senior Debt Interest On Subordinated Debt Principal Sub-Ordinated Debt (Repayment) Repayment of Sub-Ordinated Debt
2013 1
0
2014 2
0
2015 3
0
2016 4 ### ### ### ###
0
0
435708 0 ###
2017 5 ###
2018 6 ###
2019 7 ###
2020 2021 2022 2023 2024 2025 8 9 10 11 12 13 ### 871416 697133 522850 348567 174283
### ###
### ###
### ###
### ###
### ###
2026 14 0
### ###
### ###
### ###
### ###
235282 209140 182997 156855 130712 104570
78427
52285
26142
0
435708 435708 435708 435708 435708 435708 435708 435708 435708 ### ### ### ### ### ### ### ### ###
0
2027 15
A
OPERATION AND MAINTENANCE Assumptions Inflation 4.00% every year Operation and Maintenance of Bridge 1.50% of Initial Investment Periodic Re-surfacing 4.00% every 3rd Year Increase in Operations of Toll Plaza10.00% every year Cost of Operating Toll Plazas 5.00% of O&M for Bridge
B
Operation and Maintenance
Initial Investment O&M Bridge Periodic Re-surfacing Operating Toll Plazas
###
2011 0
2012 1
2013 2 653562 32678
cost of periodic resurfacng has to be considered in referenece with construction cost
2014 2015 3 4 679705 706893 35946
onstruction cost
39541
2016 2017 2018 5 6 7 ### 764576 795159 ### 43495 47844 52628
2019 2020 2021 8 9 10 ### 860043 894445 ### 57891 63680 70048
2022 2023 11 12 ### 967432 ### 77053 84759
2024 13 ###
2025 2026 2027 14 15 16 ### ### ### ### 93234 102558 112814 124095
DEPRECIATION Assumptions Method of Depreciation Rate of Depreciation
WDM 15%
SLM 10%
Depreciation 2011 Depreciation (WDV) Written Down Value Depreciation (SLM)
2012 0
2013 1 ### ### ###
2014 2 ### ### ###
2015 3 ### ### ###
2016 4 ### ### ###
2017 5 ### ### ###
2018 6 ### ### ###
2019 7 ### ### ###
2020 8 ### ### ###
2021 9 ### ### ###
2022 10 ### ### ###
2023 11 ### ### ###
2024 2025 2026 2027 12 13 14 15 ### 929639 790193 671664 ### ### ### ### ### ### ### ###
PROFIT AND LOSS ACCOUNT Assumptions Minimum Alternative Tax 0% Corporate Tax 40% Repayment of the principal for Debt Amount is not considered in the Profit and Loss Account
Profit and Loss Account 2011 EXPENDITURES O&M Bridge Periodic Re-surfacing Operating Toll Plazas Non-Operating Expenses Interest On Senior Debt Interest On Subordinated Debt TOTAL EXPENSES
2012
2013 ### 0.00 32678.12
###
REVENUES Operating Revenues Toll Revenues Advertisement Revenue
### 32500.00
TOTAL REVENUES
###
PROFIT BEFORE DEPRE & TAX DEPRECIATION PROFIT BEFORE TAX Corporate Tax PROFIT AFTER DEPRE & TAX
### ### ### 0.00 ###
WACC Cost Of Equity Cost of Debt WACC
Cost
Share 15% 50% 10% 50% 12.50%
the Profit and Loss Account
2014
2015
2016
2017
2018
2019
2020
2021
### ### 735168.79 ### ### ### ### ### 0.00 0.00 ### 0.00 0.00 ### 0.00 0.00 35945.93 39540.52 43494.58 47844.03 52628.44 57891.28 63680.41 70048.45
###
###
### ### 33800.00 35156.00
### ### ###
### ### ###
### ### ###
### ### ###
### ### ###
### ### ###
### ### ### ### ### ### 40215.39 41824.13 43499.43 49846.23 51844.38 53922.14
###
###
###
###
###
###
###
###
### ### ### 0.00 ###
### ### ### 0.00 ###
### ### ### 0.00 ###
### ### ### 0.00 ###
### ### ### 0.00 ###
### ### ### 0.00 ###
### ### ### ### ###
### ### ### ### ###
2022
2023
2024
2025
2026
2027
### ### ### ### 0.00 0.00 77053.29 84758.62 93234.49
### ### ###
### 0.00 ###
### 0.00 ###
### ### ### ### ### 78427.48 52284.99 26142.49 ### ### ### ###
0.00 0.00 ###
###
### ### ### ### ### ### 61689.71 64157.40 66719.98 76331.28 79382.76 82562.63 ###
###
###
###
###
###
### ### ### ### ###
### ### ### ### ###
### ### ### ### ###
### ### ### ### ###
### ### ### ### ###
### ### ### ### ###
CASHFLOW AND EIRR Assumptions Method of Depreciation considered for preparing the cash flow is Straight line Method WACC is considered as Discounting rate for Project NPV Cost of Equity is Considered as Discounting rate for Equity NPV 2011 0 Depreciation Initial Investment Cash Flow NPV IRR
27,227,476 2%
EQUITY IRR Initial Investment Depreciation (SLM) Principal Repayment
###
Cashflow NPV EIRR
### 15,785,345 4%
Comment on Project viability
Project's Net present value of the project is negative and also the project The Net present value of the Equity is also negative and the Internal rate
The Net Present Value is negative, coupled up with a very low level of Internal Rat With regard to this we can conclude that the Project is not Viable enough to be tak The project IRR and NPV not yeilding better results, Equity IRR has been worked ou
w is Straight line Method
2012 0
2013 1 4,357,082.50
2014 2 ###
2015 3 ###
2016 4 ###
2017 5 ###
2018 6 ###
417,718.26
###
###
###
###
###
4,357,082.50
###
###
### ###
### ###
### ###
417,718.26
###
###
### 374,890.21
###
### ###
###
###
tive and also the project IRR is also not attractive hence the project is not viable for con ive and the Internal rate of return of the Equity is Very much Lower than the Cost of Eq INFERENCES
ery low level of Internal Rate of Return at 2% as compared to the Weighted Average Cost of Capital not Viable enough to be taken, in accordance with the conditions and assumptions taken for compu uity IRR has been worked out to check the return on Equity investments
2019 7 ###
2020 8 ###
2021 9 ###
2022 10 ###
2023 11 ###
2024 12 ###
2025 13 ###
###
###
###
###
###
###
###
### ###
### ###
### ###
### ###
### ###
### ###
### ###
255,026.66
###
###
###
###
###
###
not viable for consideration an the Cost of Equity hence the project is not viable for investment.
age Cost of Capital at 12.5%. ons taken for computing the Financial Model
2026 14 ###
2027 15 ###
###
###
###
###
###
###
DEBT SERVICE COVERAGE RATIO
Debt Service Coverage Ratio
PROFIT AFTER DEPRE & TAX Depreciation (SLM) Interest On Senior Debt Interest On Subordinated Debt Amount Available For Repayment Interest Repayment Principal Repayment Amount required for Debt Service DSCR Average DSCR
2011 0 0
2012 0 0
2013 1 ### ###
2014 2 ### ###
###
###
2015 3 ### ###
###
2016 4 ### ### ### ### ### ### ### ###
2017 5 ### ### ### ### ### ### ### ###
2018 6 ### ### ### ### ### ### ### ###
2019 7 ### ### ### ### ### ### ### ###
2020 8 ### ### ### ### ### ### ### ###
2021 9 ### ### ### ### ### ### ### ###
2022 10 ### ### ### ### ### ### ### ###
0.16 1.72
1.09
1.32
1.07
1.82
2.01
1.82
2023 2024 2025 11 12 13 ### ### ### ### ### ### ### ### ### 78427.48 52284.99 26142.49 ### ### ### ### ### ### ### ### ### ### ### ### 2.55
2.81
2.58
2026 14 ### ###
2027 15 ### ###
###
###
0.00
0.00
A
B
C
D
E
F
G
COST ESTIMATES Consultant Fees 2% Expert Fees (Deployed By State Govt) 1% Environmental Clearence 5% Pre Operative Expences 3% Contingencies 5% Increase in manpower cost 10% Cost Of Engineers (Rs.) ### cost of supervisior (Rs.) ### Cost of Permenant Staff (Rs.) ### Cost of Administrative Office 0% Cost of Construction Toll Plaza 1% The general Lighting cost of the Bridge is assumed to be covered in the Per Km cost of Bridge Land will be transferred by the state govt to the developer as free of cost. TRAFFIC PROJECTIONS Average Annual Growth Rate 4% Inflation Rate (Every 3rd Year) 10% Bridge Length 2.5 Toll Rates 2-Wheelers 7.5 4-Wheelers 10 S.T. Bus 1000 Advertisement Revenue 1% Inflation rate is also applied to the per annum payment of State Transport Buses FINANCIAL PLAN Interest During Construction is payed back quarterly Moratorium Period is considered as 3 years for both the debts OPERATION AND MAINTENANCE Inflation 4% Operation and Maintenance of Bridge 2% Periodic Re-surfacing 4% Increase in Operations of Toll Plaza 10% Cost of Operating Toll Plazas 5% DEPRECIATION Written Down Value Method 15% Straight line Method 10% PROFIT AND LOSS ACCOUNT Minimum Alternative Tax 0% Corporate Tax 40% Repayment of the principal for Debt Amount is not considered in the Profit and Loss Account CASHFLOW Method of Depreciation considered for preparing the cash flow is Straight line Method WACC is considered as Discounting rate for Project NPV
Cost of Equity is Considered as Discounting rate for Equity NPV
of total construction of total construction of construction cost of total construction of total construction Per Annum Per Annum Per Annum Per Annum of construction cost of construction cost m cost of Bridge
cost cost cost cost
Km. per km perkm per vehicle per annum of Total Vehicular Toll Revenue
every year of Initial Investment every 3rd Year every year of O&M for Bridge
d Loss Account
0
COST ESTIMATES A
Assumptions Consultant Fees 2% of total construction cost Expert Fees (Deployed By State Govt) 1% of total construction cost Environmental Clearence 5% of construction cost Pre Operative Expences 3% of total construction cost Contingencies 5% of total construction cost Increase in manpower cost 10% Per Annum Cost Of Engineers (Rs.) ### Per Annum cost of supervisior (Rs.) ### Per Annum Cost of Permenant Staff (Rs.) ### Per Annum Cost of Administrative Office 0.50% of construction cost Cost of Construction Toll Plaza 1% of construction cost The general Lighting cost of the Bridge is assumed to be covered in the Per Km cost of Bridg Land will be transferred by the state govt to the developer as free of cost.
A
Construction Costs Description Land Cost Site Clearances Bridge Construction Site Office Construction of Toll Plaza Environmental Clearence Total (Bridge Cost)
B
Unit Sqm. Km. L.S. L.S. L.S.
2 1
Length 500 2.5
2
Man Power
Description Engineer Supervisor Permanent staff
Unit Persons Persons Persons
Total (Man Power) C
No
Expert & Consultancy Description Technical Consultancy fees Expert employed by State Govt. Total (Expert & Consultancy)
Period No (Years) 4 1 1 1 2 1
Breadth
Height 20 1
1 1
D E
Pre Operative Expenses Contengencies
(A+B+C +D+E) Total Project Cost (In INR)
Per Km cost of Bridge
Quantity
Rate (Rs.)/Sq.mAmount (Rs.) 0 0 20000 100 2,000,000 2.5 12,000,000 30,000,000 160,000 640,000 1,640,000 32,800,000
Rate / Rate / Amount Annum(INR.) Annum(INR.) Amount (INR) (INR) Year I Year I Year II Year II 500,000.00 550,000 2,000,000 2200000 300,000.00 330,000 300,000 330000 150,000.00 165,000 300,000 330000 2,600,000 ### ###
Amount (INR) 656,000 328,000 984,000
1,177,320 1,962,200
43,570,825
TRAFFIC PROJECTIONS Assumptions Average Annual Growth Rate 4% rd Inflation Rate (Every 3 Year) 10% Bridge Length 2.5 Km. Toll Rates 2-Wheelers 7.5 per km 4-Wheelers 10 perkm S.T. Bus 1000 per vehicle per annum Advertisement Revenue 1% of Total Vehicular Toll Revenue Inflation rate is also applied to the per annum payment of State Transport Buses
Traffic Projection 2-Wheelers 4-Wheelers S.T. Bus Toll Rate Projection 2-Wheelers (Rs) 4-Wheelers (Rs) S.T. Bus (Rs./each)
1 2013
2 2014
3 2015
4 2016
5 2017
6 2018
20000 75000 1000
20800 78000 1040
21632 81120 1082
22497 84365 1125
23397 87740 1170
24333 91250 1217
19 25 1000
19 25 1000
19 25 1000
21 28 1100
21 28 1100
21 28 1100
Toll & Advertizement Revenue Generation (INR) 2-Wheelers 375000 390000 405600 464001 482563 501868 4-Wheelers 1875000 ### ### ### ### ### S.T. Bus 1000000 ### ### ### ### ### Advertisement Revenue 32500 33800 35156 40215 41824 43499 Total Revenue Generation 3282500 ### ### ### ### ###
ansport Buses 7 2019
10 2022
11 2023
12 2024
13 2025
26318 27371 28466 98696 102644 106750 1317 1370 1425
29605 111020 1482
30789 115461 1541
32021 120079 1603
25 33 1331
25 33 1331
25 33 1331
28 37 1464
582038 605314 629533 720190 ### ### ### ### ### ### ### ### 49846 51844 53922 61690 ### ### ### ###
749007 3694191 1972542 64157 6479897
778962 3841965 2051071 66720 6738718
891144 4395192 2346792 76331 7709459
25306 94900 1266
23 30 1210
8 2020
23 30 1210
9 2021
23 30 1210
14 2026
15 2027
33302 124882 1667
34634 129877 1734
28 37 1464
28 37 1464
926795 4570993 2440488 79383 8017659
963864 4753823 2538576 82563 8338826
PROJECT TIME TABLE
Financial Close Operations Period Considered (Months) Construction Schedule Start of Construction Period Construction Period (months) End of Construction Period Operations: Commercial Operations Date Project Period Ends First Financial Year Begins First Financial Year Ends Concession Period: Concession Period Starts Concession Period Ends
31-Dec-10 180 1-Jan-11 24 31-Dec-12 1-Jan-13 31-Dec-27 1-Jan-11 31-Dec-11 1-Jan-13 31-Dec-27
FINANCIAL PLAN Assumptions Interest During Construction is payed back quarterly Moratorium Period is considered as 3 years for both the debts
Contribution 50% 25% 15% 10% 50% 10% 40%
Cost
INTEREST DURING CONSTRUCTION
Q1-1 5446353
Contribution of Equity Contribution of Sub Ordinated Debt Contribution of Senior Debt
5446353
Q1-2 5446353 16339059 5446353
Total Interest During Construction Sub Ordinated Senior Debt by Senior Lender Total Grand TOTAL IDC
5446353
5446353
EQUITY Private operator Authority state government DEBT Sub Ordinated Senior Debt by Senior Lender Total Project Cost
1187305 Senior
Proportion of Total Debt Proportion of Total Debt (Amount in INR)
Prime Lending Rate Interest Rate (During Construction Period) Interest Rate (During Operations Period) Drawdown Starts Repayment (years ) Repayment per year No. of Instalments
6% 10%
Sub-ordinated 40%
10%
0 10% 10% 10% 1-Jan-2012
0
10 1
10
6%
6% 6% 1-Jan-2012 10 1 10
Repayment / Redemption Starts Repayment / Redemption Ends Moratorium Period- 3 years
1-Jan-2016 ###
1-Jan-2016 31-Dec-2025
3
3
Share
Total Equity/Debt 21785412
10892706 6535624 4357082 21785412 4357082 17428330 43570825 ok Q1-3 5446353 10892706 5446353
Q1-4 5446353 5446353 5446353
Q2-1 5446353 0 4357082 1089271
5446353
5446353
5446353 261425 108927 370352
Q2-2 5446353
Q2-3 Q2-4 5446353 5446353
5446353 5446353 5446353
5446353 5446353 5446353
408476 408476
272318 272318
136159 136159
ok
INTEREST ON SENIOR AND SUB-ORDINATED DEBT 2011
2012 0
Interest On Senior Debt Principal Senior Debt (Repayment) Repayment of Senior Debt Interest On Subordinated Debt Principal Sub-Ordinated Debt (Repayment) Repayment of Sub-Ordinated Debt
2013 1
0
2014 2
0
2015 3
0
2016 4 ### ### ### ###
0
0
435708 0 ###
2017 5 ###
2018 6 ###
2019 7 ###
2020 2021 2022 2023 2024 2025 8 9 10 11 12 13 ### 871416 697133 522850 348567 174283
### ###
### ###
### ###
### ###
### ###
2026 14 0
### ###
### ###
### ###
### ###
235282 209140 182997 156855 130712 104570
78427
52285
26142
0
435708 435708 435708 435708 435708 435708 435708 435708 435708 ### ### ### ### ### ### ### ### ###
0
2027 15
A
OPERATION AND MAINTENANCE Assumptions Inflation 4.00% every year Operation and Maintenance of Bridge 1.50% of Initial Investment Periodic Re-surfacing 4.00% every 3rd Year Increase in Operations of Toll Plaza10.00% every year Cost of Operating Toll Plazas 5.00% of O&M for Bridge
B
Operation and Maintenance
Initial Investment O&M Bridge Periodic Re-surfacing Operating Toll Plazas
###
2011 0
2012 1
2013 2 653562 32678
cost of periodic resurfacng has to be considered in referenece with construction cost
2014 2015 3 4 679705 706893 35946
onstruction cost
39541
2016 2017 2018 5 6 7 ### 764576 795159 ### 43495 47844 52628
2019 2020 2021 8 9 10 ### 860043 894445 ### 57891 63680 70048
2022 2023 11 12 ### 967432 ### 77053 84759
2024 13 ###
2025 2026 2027 14 15 16 ### ### ### ### 93234 102558 112814 124095
DEPRECIATION Assumptions Method of Depreciation Rate of Depreciation
WDM 15%
SLM 10%
Depreciation 2011 Depreciation (WDV) Written Down Value Depreciation (SLM)
2012 0
2013 1 ### ### ###
2014 2 ### ### ###
2015 3 ### ### ###
2016 4 ### ### ###
2017 5 ### ### ###
2018 6 ### ### ###
2019 7 ### ### ###
2020 8 ### ### ###
2021 9 ### ### ###
2022 10 ### ### ###
2023 11 ### ### ###
2024 2025 2026 2027 12 13 14 15 ### 929639 790193 671664 ### ### ### ### ### ### ### ###
PROFIT AND LOSS ACCOUNT Assumptions Minimum Alternative Tax 0% Corporate Tax 40% Repayment of the principal for Debt Amount is not considered in the Profit and Loss Account
Profit and Loss Account 2011 EXPENDITURES O&M Bridge Periodic Re-surfacing Operating Toll Plazas Non-Operating Expenses Interest On Senior Debt Interest On Subordinated Debt TOTAL EXPENSES
2012
2013 ### 0.00 32678.12
###
REVENUES Operating Revenues Toll Revenues Advertisement Revenue
### 32500.00
TOTAL REVENUES
###
PROFIT BEFORE DEPRE & TAX DEPRECIATION PROFIT BEFORE TAX Corporate Tax PROFIT AFTER DEPRE & TAX
### ### ### 0.00 ###
WACC Cost Of Equity Cost of Debt WACC
Cost
Share 15% 50% 10% 50% 12.50%
the Profit and Loss Account
2014
2015
2016
2017
2018
2019
2020
2021
### ### 735168.79 ### ### ### ### ### 0.00 0.00 ### 0.00 0.00 ### 0.00 0.00 35945.93 39540.52 43494.58 47844.03 52628.44 57891.28 63680.41 70048.45
###
###
### ### 33800.00 35156.00
### ### ###
### ### ###
### ### ###
### ### ###
### ### ###
### ### ###
### ### ### ### ### ### 40215.39 41824.13 43499.43 49846.23 51844.38 53922.14
###
###
###
###
###
###
###
###
### ### ### 0.00 ###
### ### ### 0.00 ###
### ### ### 0.00 ###
### ### ### 0.00 ###
### ### ### 0.00 ###
### ### ### 0.00 ###
### ### ### ### ###
### ### ### ### ###
2022
2023
2024
2025
2026
2027
### ### ### ### 0.00 0.00 77053.29 84758.62 93234.49
### ### ###
### 0.00 ###
### 0.00 ###
### ### ### ### ### 78427.48 52284.99 26142.49 ### ### ### ###
0.00 0.00 ###
###
### ### ### ### ### ### 61689.71 64157.40 66719.98 76331.28 79382.76 82562.63 ###
###
###
###
###
###
### ### ### ### ###
### ### ### ### ###
### ### ### ### ###
### ### ### ### ###
### ### ### ### ###
### ### ### ### ###
CASHFLOW AND EIRR Assumptions Method of Depreciation considered for preparing the cash flow is Straight line Method WACC is considered as Discounting rate for Project NPV Cost of Equity is Considered as Discounting rate for Equity NPV 2011 0 Depreciation Initial Investment Cash Flow NPV IRR
27,227,476 2%
EQUITY IRR Initial Investment Depreciation (SLM) Principal Repayment
###
Cashflow NPV EIRR
### 15,785,345 4%
Comment on Project viability
Project's Net present value of the project is negative and also the project The Net present value of the Equity is also negative and the Internal rate
The Net Present Value is negative, coupled up with a very low level of Internal Rat With regard to this we can conclude that the Project is not Viable enough to be tak The project IRR and NPV not yeilding better results, Equity IRR has been worked ou
w is Straight line Method
2012 0
2013 1 4,357,082.50
2014 2 ###
2015 3 ###
2016 4 ###
2017 5 ###
2018 6 ###
417,718.26
###
###
###
###
###
4,357,082.50
###
###
### ###
### ###
### ###
417,718.26
###
###
### 374,890.21
###
### ###
###
###
tive and also the project IRR is also not attractive hence the project is not viable for con ive and the Internal rate of return of the Equity is Very much Lower than the Cost of Eq INFERENCES
ery low level of Internal Rate of Return at 2% as compared to the Weighted Average Cost of Capital not Viable enough to be taken, in accordance with the conditions and assumptions taken for compu uity IRR has been worked out to check the return on Equity investments
2019 7 ###
2020 8 ###
2021 9 ###
2022 10 ###
2023 11 ###
2024 12 ###
2025 13 ###
###
###
###
###
###
###
###
### ###
### ###
### ###
### ###
### ###
### ###
### ###
255,026.66
###
###
###
###
###
###
not viable for consideration an the Cost of Equity hence the project is not viable for investment.
age Cost of Capital at 12.5%. ons taken for computing the Financial Model
2026 14 ###
2027 15 ###
###
###
###
###
###
###
DEBT SERVICE COVERAGE RATIO
Debt Service Coverage Ratio
PROFIT AFTER DEPRE & TAX Depreciation (SLM) Interest On Senior Debt Interest On Subordinated Debt Amount Available For Repayment Interest Repayment Principal Repayment Amount required for Debt Service DSCR Average DSCR
2011 0 0
2012 0 0
2013 1 ### ###
2014 2 ### ###
###
###
2015 3 ### ###
###
2016 4 ### ### ### ### ### ### ### ###
2017 5 ### ### ### ### ### ### ### ###
2018 6 ### ### ### ### ### ### ### ###
2019 7 ### ### ### ### ### ### ### ###
2020 8 ### ### ### ### ### ### ### ###
2021 9 ### ### ### ### ### ### ### ###
2022 10 ### ### ### ### ### ### ### ###
0.16 1.72
1.09
1.32
1.07
1.82
2.01
1.82
2023 2024 2025 11 12 13 ### ### ### ### ### ### ### ### ### 78427.48 52284.99 26142.49 ### ### ### ### ### ### ### ### ### ### ### ### 2.55
2.81
2.58
2026 14 ### ###
2027 15 ### ###
###
###
0.00
0.00
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