including power generation, upstream oil & gas, LNG liquefaction and regasification, refining, petrochemicals and gas/electricity transmission


Case study: CSP Power

Portland Advisers acted as financial adviser to US Ex-Im Bank in connection with its support for the financing of the 125 MW US$ 415 million CSP Power Project in Rajasthan, India sponsored by Reliance Power Limited.

Ex-Im Bank’s loan tranche of US$ 80.3 million is part of a total debt package of $285 million, with other lenders being the Asian Development Bank and FMO, the Dutch development bank. The funding includes a domestic Rupee loan tranche. The transaction closed in July 2012.

The project uses compact linear Fresnel reflector (CLFR) technology from AREVA Solar Inc., California. CLFR technology boils water using a series of rotating flat mirrors to concentrate sunlight onto a central elevated system of tubes that contain water. The solar system produces superheated steam that is collected in a piping system and transported to a steam turbine to produce electricity. This is one of the first projects to use technology of this kind from AREVA Solar on a large commercial scale.

The CSP Power Project was developed by Reliance Power Ltd in close cooperation with AREVA. The EPC contract and O&M services are being provided by Reliance Infrastructure Limited. Power will be sold under India’s National Solar Mission program to NVVN, a subsidiary of state owned National Thermal Power Cooperation.

Geoff Knox and his team were responsible for the following tasks:

  • Project appraisal and identification of critical issues
  • General review of project agreements, including detailed review of the PPA
  • In-depth review of EPC contract (with focus on LD scheme, both for delay and performance)
  • Review and structuring of project model including the development of a hedging strategy for currency exposure ($ loan versus Rs revenues under the PPA)
  • Assistance with the preparation of internal papers
  • Term sheet negotiation with client (in close cooperation with Ex-Im staff)
  • On behalf of Ex-Im, managing the commercial aspects of the loan documentation process
  • Advising Ex-Im on key issues arising  out of technical due diligence in close cooperation with Technical and Legal Adviser and
  • Engagement and Management of the Insurance Due Diligence process

Contact geoff.knox@portlandadvisers.com for further information.