This project is for the design, development, construction, operation and maintenance of a run-of-the-river hydroelectric power plant, with an estimated capacity of 10MW, located in the Parroquia Ulba, Cantón Baños de Agua Santa, province of Tungurahua, Ecuador.

Nathan was retained by Banco Pichincha as the independent technical advisor to conduct a due diligence analysis for their proposed investment. The main objective is to present an independent and critical analysis that ensures the optimal technical and financial configuration of the project, in order to minimize the possible risks.

Nathan’s specific objectives include:

  • Ensuring the project is technically and financially sound
  • Analyzing the physical characteristics of the project site in terms of topography, geology, volcanology, ease of access, etc.
  • Analyzing the main provisions in the construction and operating permit
  • Reviewing the hydrology, energy production, and revenue projections
  • Reviewing the project’s engineering and construction parameters for compliance with international standards
  • Evaluating the business plan and project budget
  • Identifying, analyzing, and recommending mitigation for the principal risks associated with the project
  • Creating a financial model to analyze the project’s future cash flow and ability to service its debt
  • Making final recommendations to the bank on whether this is a sound investment

If the investment is recommended and approved, Nathan will be retained to assist the bank with Lender’s Independent Engineering services as well.

Details

Office

Arlington

Client

Hidrosierra and Banco Pichincha

Dates

2016 - 2018

Country

Ecuador

Relevant Services

Asset Performance Assessment & Monitoring, Energy, Transaction Advisory Services & Project Finance Structuring

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