• September 1, 2019

At the peak of the shortage, the blackouts averaged hours per day, days per year. In response to my question for this section, I was hoping for comments that the IRR was very high. The board of Dabhol Power Company authorizes management to terminate the contract any time it chooses. I would like you to think about the implications of different return measures. The risks particularly associated with the second Oresund Bridge project is in its infrastructure.

This surplus of residential homes could be verified by a simple drive around sprawling suburban areas of American cities where it was apparent that supply was increasing much faster than the overall population. The Dabhol case was a classic case where evaluation of the off-taker was a crucial element of credit analysis. This was a valid complaint as private investment in the country dried up to an extent. When you have finished this process, there should be a second sheet in your file that is cleaned up. You should probably write this up after you are finished with other parts of the assignment.

Comes into play with devaluation and intended to pay back from purchasing power parity notion and the eventual increase in prices.

dabhol power project case study ppt

The PPA required a three hour horizon dabhlo full availability; project management protested that this provision did not contemplate ramping up from a cold start a requirement almost any power plant would have trouble with.

The graph can be downloaded by pressing the button below.

dabhol power project case study ppt

Rather, the companies appeared to have taken whatever steps were necessary to bring the generating facilities back on- line as soon as possible by accelerating maintenance and incurring additional expenses. If it can’t happen here-with the most respectable sponsors, with independent pot supply, and the most financially stable state-can it happen anywhere in India?


Project Finance Case Study – Dabhol Power Plant

Other than the HBS case, resources that should help you completing the case and are available download in different sections include: Hopewell constructed two megawatt gas turbine plants in Luzon. PowerPoint Templates – Are you a PowerPoint presenter looking to ppt your audience with professional layouts?

Even though the failure of the case is well known, I would like to know how you would have evaluated both positive and negative aspects of the project financing and how you would have considered nuances involving contract structure in particular, the PPA pricing ; benchmarking of costs, rate of return analysis, and off-taker assessment.

dabhol power project case study ppt

GE and Bechtel were fully compensated for their investment Reduced Enron interest. ECO Natural Gas.

The debt term was 15 years with a spread of basis points and 90 basis points fee. Utility companies, competitive suppliers, oower groups, consumer representatives and government regulators all groups supported de-regulation. Next, would be the process to meet to discuss the risks attributed with the management areas. We believe in the goal of cheap power in abundance for India The powers and ppt of the company have private information stored there and the loss or leak of the data could be catastrophic to the company.

The last exhibit in this case has numbers on the PPA agreement including the capacity charge. But the policy is weak and grudging: The menus that should appear are shown in the screen shots below. The plant runs on naphtha supply and LNG. Internal consumption plummeted, fiscal policy contracted, and private dabnol has all but disappeared.

InArgentina abandoned the currency peg that had maintained 1: I have however, put some of the information from the case in screenshots below.


Dabhol power project case study ppt

The suppliers may have tried to sell the power to the ISO or out-of-state buyers, hoping to fetch a higher price. In this file you will find a couple of tables that oower the revenue of MSEB before attempting to recover charges for the Dabhol plant. Even after the rationing ended the habit of conservation persisted and consumption remained low. I have illustrated a little excerpt from this below.

Dabhol power project case study ppt

We think you have liked this presentation. The rapid build-out of IPPs during the s meant that with the impact of the Asian financial crisis inthe cost of electricity began to explode dramatically due to a combination of: According to the Wall Street Journal: If you are having trouble, you can send me an e-mail to edwardbodmer gmail.

This is demonstrated by comparing the cost per kW-year in the HBS case with current costs that are published by Lazard. Under the old system, Mr. As an employee of YieldMore, your team has been given the task of creating a risk management plan for the organization. Write-up the Summary Write a succinct summary of the case from a credit analysis perspective e.

This was a valid complaint as private investment in the country dried up to an extent.