A private investment bank was structuring the financing of the construction of a Hydroelectric Project in Brazil with a capacity of 250 MW, and Nathan conducted a due diligence on the technical, commercial, financial, and regulatory aspects of the project.
The main objectives of this due diligence assessment were to:
- Ensure that the project was technically, financially, and environmentally sound
- Analyze the key provisions in the project’s operating contracts or concession contracts
- Review the energy production and revenue projection prepared by the project’s sponsor
- Review of project’s engineering, construction and operations parameters
- Assess the business plan and the main inputs to the financial model with respect to assumptions that affect the expected future cash flow
- Identify and analyze the principal risks associated with the project and how such risks may affect its financial viability and capacity to serve debt