Experience

Delphos International is different from other financial advisors. Since 1987, we have cultivated successful relationships with government and international financial institutions worldwide. We have leveraged these relationships to arrange over $10 billion in financing for clients in every region of the developing world across multiple industry sectors. Given our access to a wide range of capital providers, our clients are not limited to any particular region, industry or size. The projects listed below represent a selection of our experience.

Diesel and Coal Bed Methane Projects in Botswana

Delphos International served as an advisor to the Botswana Power Corporation ("BPC") on two fast-track IPP projects. The first was a 70 MW interim diesel-fired project to address the anticipated power shortages in Botswana in 2010. Delphos International successfully organized an international tender to identify a contractor and then completed discussions with the party chosen for a two-year renewable PPA. The diesel project came online in Q1 2010. The second is a 90-250 MW dual fuel project (diesel and coal bed methane) that addressed mid-term (2011-2012) shortages and may serve as a peaking unit long term. In these projects, the firm advised BPC on all aspects of sponsor selection, negotiating power purchase agreements, and other key documents.

 

Coal-Fired Plant in Botswana

Delphos International advised the Government of Botswana and Botswana Power Corporation ("BPC") on the financing of the 600 MW Morupule B coal-fired power project, including associated transmission and water supply infrastructure, with total project costs estimated at $1.6 billion. As sole financial advisor, Delphos International designed and organized a process for soliciting financing proposals from domestic, regional, and international financing institutions. Following receipt of more than 10 expressions of interest, the team analyzed and ranked the submissions, and based on our recommendations the client chose a financing plan involving a mixture of multilateral and commercial financing at very attractive rates and tenors. ICBC (China) provided $825 million over a 20-year term, backed by a Sinosure guarantee for the first 15 years and a partial credit guarantee from The International Bank for Reconstruction and Development ("IBRD") for the last 5 years. ICBC also provided a bridge loan facility of $140 million, guaranteed by its affiliate Standard Bank of South Africa, to help BPC meet EPC contract milestone payments while final approvals were being arranged for the term loan facility.

Along with Standard Bank, Delphos International also designed a hedging solution that converts the proceeds of the dollar financing into actual and synthetic Pula (based on a trade-weighted currency basket). Financial close on the ICBC facilities took place according to schedule on June 15, 2009. In addition, Delphos International advised BPC on the negotiations of a bankable coal supply agreement between MCL (a subsidiary of DeBeers) and BPC for the Morupule project. The transaction was awarded the 2009 Deal of the Year by Project Finance and Project Finance International magazines.

 

Heavy Equipment Leasing Feasibility Study in Cameroon

Delphos International was engaged by Diamond International, Inc., a private investment company in the U.S., who in partnership with Caterpillar Inc. has established Location Cameroon S.A., a Cameroon-registered company that will provide heavy equipment leasing, rental and services in West Africa. Delphos International successfully secured a $184,000 grant from the U.S. Trade and Development Agency ("USTDA") to fund a feasibility study, and subsequently lead the study that included an assessment of the market, operational, financial and legal viability of the project. Due diligence and analysis required numerous site visits to evaluate location, local partners, and market conditions.

 

Financing and Carbon Credits for Hydropower Projects in India

Delphos International has worked with Dodson-Lindblom ("DLI") on numerous occasions. The firm first acted as an advisor to DLI in 1999 by helping to raise $10 million in project financing for a 12 MW rehabilitation project in the State of Maharashtra near Mumbai, India; this was the first private hydropower project in India. In 2005, the firm helped DLI obtain an additional $27 million in senior debt from the International Finance Corporation ("IFC') and DEG (Germany) for the development, construction and rehabilitation of a cluster of hydropower projects in India totaling more than 60 MW. In addition to the debt, the firm negotiated a $19 million equity investment from a private equity investor. The firm helped the projects qualify under the Clean Development Mechanism of the Kyoto Protocol to support the sale of Certified Emission Reductions (Carbon Credits) to an AAA-rated purchaser, which boosted revenue by more than 10%.

 

Oil & Gas Pipeline in Colombia

Delphos International, as subcontractor to Granherne (a subsidiary of KBR), performed the economic and financial analysis to improve security of Ecopetrol's national oil and gas pipeline system from attacks and technical failures. Delphos International also developed a blueprint for financing the project.

 

Offshore Natural Gas Development in South Africa

Delphos International assisted Forest Oil and Anschutz Corporation in undertaking a greenfield development project involving the exploration and production of natural gas reserves in the Ibubhesi gas field, and the construction of a pipeline to Cape Town, South Africa. During the first stage, Forest Oil and its South African partner planned to begin gas production of 415 Bcf over a 10-year period. Initial Project costs were estimated to be $275 million. As part of the development of the project, the firm assisted Forest Oil in applying for a $1.3 million cost-sharing grant through the U. S. Trade and Development Agency ("USTDA"). In September of 2002, $650,000 was awarded by USTDA to cover half of the costs of determining the technical, economic, and environmental feasibility of the pipeline.

 

Transmission Line Feasibility Study in Ghana

Delphos International won a competitive tender from GRIDCo, Ghana’s national transmission grid operator, to lead an advisory team of engineering, financial, economic, regulatory, and environmental experts to assess the feasibility of two new 161 kV transmission lines stretching more than 330 km in eastern Ghana. In addition to serving as prime contractor, Delphos prepared a proforma financial model, conducted sensitivity analyses, provided recommendations on potential financing sources, and reviewed key project transaction agreements. Delphos also conducted managerial training workshop for GRIDCo, which covered managerial aspects of electricity transmission infrastructure planning, including financial and economic planning and power purchase agreements. The $645,000 grant funding the tender was provided to GRIDCo by the USTDA.

 

Coal-Fired Power Project in Botswana

Delphos International provided assistance to the Government of Botswana ("GoB") related to the large-scale Mmamabula electricity and coal project. The advisory work was financed by the GoB and the U.S. Trade and Development Agency ("USTDA"). The U.S. Agency for International Development ("USAID") also provided additional financial assistance to the GoB. The supercritical power plant, to be built by Shanghai Electric, is based on 1,200 MW net, air-cooled, pulverized coal design, with emissions controls suitable to meet Equator Principles requirements. Total project costs are approximately $5 billion. Power will be sold to Eskom of South Africa and the Botswana Power Corporation (BPC). Delphos International advised the GoB on all financing and risk allocation issues related to the project, including tax regime, GoB guaranty of BPC's financial obligations, GoB option to invest in the project, competitiveness of tariffs, GoB agreements with the project company (implementation, HR, generation license).

 

Gas-to-Electricity Feasibility Study in Cameroon

As team leader of a five-firm consortium, Delphos International advised the Government of Cameroon ("GoC") on technical, economic, financial, legal, and regulatory matters related to two gas power plants in southwest Cameroon. As part of the feasibility study, Delphos International and its team advised on the proper allocation of risks for the development of offshore Isongo gas field in Cameroon and related long-term fuel supply arrangements to the existing 80 MW Limbe power plant in connection with its conversion to gas. Delphos International assessed the technical and economic feasibility of the conversion to natural gas of an existing 85 MW heavy fuel oil-fired power plant together with the technical, economic, and financial feasibility of the concomitant greenfield construction of a 315 MW combined-cycle gas turbine power plant and its associated transmission. The estimated total project costs are $393 million.

 

Privatization of Large Power Plants in Nigeria

Delphos International won an international tender from the Government of Nigeria ("GoN") to perform technical, economic and financial advisory services related to capital expenditure, ownership/management and financing options for two of the country's largest existing power plants: Shiroro (600 MW hydro) and Egbin (1,320 MW gas-fired). The team's services included technical, financial/economic, environmental and regulatory analyses, as well as evaluating the project ownership structure, developing a proforma financial model and investment memorandum, and provision of training support to GoN staff in financial modeling and analysis. This effort falls under a wider government policy of privatizing the electric sector under the Power Sector Reform Act. The $467,300 grant funding the tender was provided to Bureau of Public Enterprises by the U.S. Trade and Development Agency ("USTDA").

 

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