That is only an estimate. If the information is outdated or incomplete, well common sense Putz. Even Jim has said he doesn't know if EXIM will require the new FS to make a decision. What does your common sense tell you?
PROJECT CRITERIA AND APPLICATION INFORMATION REQUIREMENTS
I. General Project
In most cases the project should have long-term contracts from creditworthy entities for the purchase of the project's output and the purchase of the project's major project inputs such as fuel, raw materials, and operations and maintenance. Such contracts should extend beyond the term of the requested EXIM Bank financing. In sectors such as telecommunications and petrochemicals if long-term contracts are not available, EXIM Bank will evaluate the transactions on a case-by-case basis, looking for economically compelling business rationale.
The project should contain an appropriate allocation of risk to the parties best suited to manage those risks. Sensitivity analysis should result in a sufficient debt service coverage ratio to ensure uninterrupted debt servicing for the term of the debt.
Total project cost should be comparable to projects of similar type and size for a particular market.
Product unit pricing and costs should reflect market based pricing.
Devaluation risk needs to be substantially mitigated through revenues denominated in hard currencies, revenue adjustment formulas based on changing currency relationships, or other structural mechanisms.
Information Required
Summary of all aspects of the project, as contained in an independently prepared feasibility study and/or a detailed information memorandum, prepared by a qualified party. The study or memorandum should include the project description, location, legal status, ownership, and background and status of key elements of the project structure, such as agreements, licenses, local partner participation and financing.
Agreements for key elements of the project. EXIM Bank considers key agreements to include all contracts necessary for the project to be built and operate. This includes contracts relating to infrastructure as well as supply and offtake agreements. These agreements should be in substantially final form. EXIM Bank will not accept summaries or outlines of these agreements.
A breakdown of anticipated project costs through commissioning, including interest during construction and working capital requirements, by major cost category and country of origin. This information should also include a breakdown of any "soft costs" such as development costs, development fees, owner's contingencies and other similar items. A breakdown of the proposed coverage for interest during construction and the method of calculation should also be included.
A summary of the anticipated project financing plan and security package, including the proposed source, amount, currency and terms of the debt and equity investments; the sources of finance in the event of project cost overruns; and description of escrow accounts. Information on the terms, security requirements, and status of financing commitments of other lenders to the project, if applicable, should be provided. All other sources approached for financing (multinational development banks, other export credit agencies, commercial banks, capital markets and private investors) must be disclosed.
Projected annual financial statements covering the period from project development through final maturity of the proposed EXIM Bank financing, to include balance sheet, profit and loss, source and application of funds statements, and debt service ratios. Projections should include a sensitivity analysis for not only the expected scenario, but pessimistic and optimistic cases as well.
This information should also be provided electronically in Lotus 123 or Excel. The structure of the financial model should be in a format that is user friendly. EXIM< Bank must be able to review and adjust the assumptions in the model.
Assumptions for the financial projections, including but not limited to the basis for sales volume and prices; operating and administrative costs; depreciation, amortization and tax rates; and local government policy on price regulation.
Market information to include ten years of historical price and volume data; present and projected capacity of industry; product demand forecast with assumptions; description of competition and projected market share of the project as compared to the shares of the competition; identity and location of customers; and marketing and distribution strategy.
A description of the principal risks and benefits of the project to the sponsors, lenders, and host government.
9. A description of the types of insurance coverage to be purchased for both the preand post-completion phases of the project.
10. Information on infrastructure required for the project to operate, specifically information pertaining to the timing, status and developmental plans.
11. A clear articulation of the need for EXIM Bank coverage.
II. Participants
Project sponsors, offtake purchasers, contractors, operators, and suppliers must be able to demonstrate the technical, managerial and financial capabilities to perform their respective obligations within the project.
Information Required
Sponsors must provide in English a brief history and description of their operations, a description of their relevant experience in similar projects, and three years of audited financial statements.
If the sponsors are part of a joint venture or consortium, information should be provided for all the participants. A shareholders agreement should also be provided. All documents pertaining to this area (joint venture agreement, management and service agreements) should be in substantially final form.
Offtake purchasers and suppliers should provide in English a history and description of operations, at least three years of audited financial statements, and a description of how the project fits in their long-term strategic plan. If the project utilizes raw materials (oil, gas, coal, ethane, etc.) copies of contracts that have been reviewed by legal counsel for appropriateness and in adherence with local law should be provided.
Contractors and operators must provide resumes of experience with similar projects and recent historical financial information.
III. Technical
Project technology must be proven and reliable, and licensing arrangements must be contractually secured for a period extending beyond the term of the EXIM Bank financing.
A technical feasibility study or sufficient detailed engineering information needs to be provided to demonstrate technical feasibility of the project.
Information Required
Technical description and a process flow diagram for each project facility.
Detailed estimate of operating costs.
Arrangement for supply of raw materials and utilities.
Draft turnkey construction contract and description of sources of possible cost increases and delays during construction, including detailed description of liquidated damage provisions and performance bond requirements.
Project implementation schedule, showing target dates for achieving essential project milestones.
A site-specific environmental assessment, highlighting concerns, requirements and solutions. These documents should demonstrate compliance with EXIM Bank's environmental guidelines. All applicants must submit a Preliminary Environmental Assessment report conducted by a third party expert prior to an application for final commitment
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