Hidrosanbartolo, S.A., requested a loan from the Inter-American Investment Corporation and the Corporacion Andina de Fomento (CAF) for a greenfield energy project in southwest Ecuador. The objective of the project was to design, build, operate, and maintain a 48.07 MW run-of-the-river hydroelectric plant with an estimated investment of US$76.8 million on the Río Negro.
Nathan conducted an appraisal and due diligence analysis of the project. We made recommendations regarding the technical, commercial, operating, financial, and environmental aspects of the project. We based our opinion of the concession permit, energy production forecast, revenues, expenses, and technical feasibility on our analysis of the energy market, regulatory and economic environment, assumptions of the financial model, and proposed construction, operations, environmental management, insurance, and commercial plans.
Our analysis and recommendations helped our client adjust the project structure to minimize the risk of debt service default.