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.

School Expansion in Ghana

Delphos International helped arrange a senior debt facility of $950,000 from the Overseas Private Investment Corporation ("OPIC") for the International Community School in Kumasi, Ghana in 2012. The loan proceeds will allow the school to construct new housing for 150 students.

 

Information Technology in Russia

Delphos International advised IBS, a leading Russian software developer and IT consulting firm, on a convertible debt investment of $13 million from the International Finance Corporation ("IFC"). This quasi-equity financing closed successfully in August 2002. Delphos International was responsible for ensuring the successful due diligence and approval of a loan and helping client negotiate favorable terms and conditions, including valuation.

 

Hydropower Plant Feasibility Study in Rwanda

Delphos International served as a financial advisor to the Government of Rwanda's ("GoR") Ministry of Infrastructure for the financing of two greenfield, run-of-the-river hydropower facilities, a 27.8 MW capacity facility in Nyaborongo and a 9.5 MW capacity facility in Rukarara. As financial advisor, Delphos International analyzed alternative ownership and financing structures to meet a variety of objectives, advised GoR in discussions with the World Bank and the International Monetary Fund ("IMF") with regards to respecting external financial covenants while building the Project, and analyzed impacts on levelized tariffs using a detailed proforma financial and economic model.

The financial and economic model assessed the various financing and ownership structures (e.g. IPP, PPP, Concessional Financing) against the minimum levelized tariff required to recover the debt and equity. Certain financing scenarios had higher weighted average costs of capital (such as a scenario with greater involvement of private investors), and thus a higher return and tariff were required. The tariff level vis-a-vis the amount of government debt or foreign investment was a critical issue for the GoR not only for the new national electricity tariff average, but also for the management of various risks to be assumed and the maintenance of external financial covenants (e.g., debt ratios).

The model was shared with the World Bank and GoR in order to assess the project's implications on Rwanda's sovereign debt covenants. The $364,740 grant funding the tender was provided to GOR by the U.S. Trade and Development Agency ("USTDA").

 

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").

 

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.

 

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).

 

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.

 

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.

 

Wireless Expansion Project in the Slovak Republic

Delphos International successfully raised $80 million in long-term limited recourse debt and political risk insurance for a wireless expansion project in the Slovak Republic sponsored by MediaOne (subsequently acquired by Deutsche Telekom) and Verizon. The firm prepared information memoranda for International Finance Corporation ("IFC") and Multilateral Investment Guarantee Agency ("MIGA") and negotiated favorable financing terms with the two agencies. Subsequently, the firm helped negotiate the early termination of these tranches as the company refinanced its prior obligations with a high-yield bond.

 

Infrastructure Equipment in Iraq

Ellicott Dredges Iraq, LLC ("EDI"), a subsidiary of Baltimore Dredge Enterprises, LLC, was established to support the construction, marketing, maintenance and spare parts distribution of dredges in Iraq. Delphos International assisted in arranging a financial structure for the construction of four marine dredges to be delivered to the Iraqi Ministry of Water. The financing structure included senior debt financing from the Overseas Private Investment Corporation ("OPIC") of $3 million to cover project costs of $7.5 million. The OPIC loan was disbursed in June 2008 and the project stood to improve river navigation, increase hydropower electricity production, maintain flood controls and improve marine transportation in Iraq.

 

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