The Port Society of Puerto de Mamonal is one of the major maritime terminals located in the Port of Cartagena, and has recently specialized in the handling of coal exports. The Inter-American Corporation for Infrastructure Financing (CIFI), together with Dutch Development bank (FMO), received a mandate to arrange a loan to finance the new Pet Coke Handling Terminal. Both parties expressed interest in undertaking a due diligence analysis of the project. Specifically, this analysis assessed engineering and operational characteristics of the project as well as the company’s financial ability to repay all project debt.
Nathan was retained as the Independent Engineer to undertake the due diligence analysis of the project to assess engineering, operational and financial characteristics of the project. Our experts reviewed Pet Coke’s design, operations, and costs, and ensured the new designs did not conflict with the operations in terms of space requirements, terminal layout, capacities of equipment, environmental controls, abatement measures, and shipping operations.
Furthermore, Nathan conducted a brief review of the coal and coke market to identify the overall risk of the terminal, and to review the financial model prepared by Puerto de Mamonal. This review validated their assumptions and ensured that the terminal would have the necessary funds to operate properly, including an analysis of prospective life-of-project gross revenue inflows, cargo forecasts, tariffs, revenue flows by terminal, operating costs, capital costs, facilities, and other capital items. Nathan reviewed and made recommendations on the proposed financing program, and projected the structure of annual financing flows.