RYANYX CGS CORPORATION CEBU WINDFARM BUSINESS PLAN INITIAL 50MW - PowerPoint PPT Presentation

RYANYX CGS CORPORATION CEBU WINDFARM BUSINESS PLAN INITIAL 50MW WINDFARM PROJECT BUSINESS PLAN NON – FIT FINANCIAL SCHEME 70:30 DEBT:EQUITY FINANCING

WIND ENERGY PROJECT  DOE Service Contract – Cebu Island  25 yrs contract – 25 yrs renewable Exclusive Rights – total 50 years  24,057 hectares – 10 Municipalites  7yrs Income Tax Holiday  10% Corp Tax After ITH  Duty Free Importation  Zero % VAT (Value Added Tax)  Priority Dispatch  NGCP – Bilateral ‐ WESM  Accelerated Depreciation  Net Operating Loss Carry Over  Carbon Credits Tax Exemption  Cash Incentive on Missionary Electrification  Cash Credit ‐ Domestic Capital Equip. / Services

DOE WIND ENERGY SERVICE CONTRACT

DOE SERVICE CONTRACT SIGNING

RYANYX CGS PREVIOUSLY OWNED 100% RE COMPANY AMIHAN ENERGY CORPORATION Retained 30% Ownership / Malysian Investors 70%

RYANYX CGS PREVIOUSLY OWNED 100% RE COMPANY AMIHAN CORP. (CEBU GOVERNOR ENDORSEMENT) Retained 30% Ownership / Malysian Investors 70%

OSLOB WINDFARM PROPOSED BUSINESS PLAN INITIAL 50MW PROJECT

ENERGY MODEL  Annual Ave. Wind Speed = 6.5m/s  Wind Turbine Rating = 2MW  Wind Plant Capacity = 50MW  # of Turbines = 25 Turbines  Capacity Factor = 40%  Renewable Energy Delivered = 6,923Mwh / Turbine 173,086Mwh for 25 Turbines

EQUIPMENT DATA  Turbine Rated Power = 2MW  Manufacturer = CNYD  Model = YDF ‐ 2000 ‐ 110  Hub Height = 90m  Shape Factor = 2.2  Rated Speed = 10m/s  Cut ‐ In Speed = 3m/s

OSLOB WIND RESOURCE ANALYSIS

OSLOB WIND RESOURCE ANALYSIS

WIND SITE TURBINES DATA

MICROSITING Brgy. Canang

MICROSITING Brgy. Canukban

MICROSITING Brgy. Manlum

MICROSITING Brgy. Cansaloay

BARANGAY PUBLIC HEARINGS

BARANGAY RESOLUTIONS

BARANGAY RESOLUTIONS

LAND LEASE AGREEMENTS

LAND LEASE AGREEMENTS

COST ANALYSIS  INVESTMENT COST = $ 110,497,975.00  Pre ‐ Development = $ 1,220,000.00 (1.1%)  Development = $ 1,335,000.00 (1.2%)  Equipment = $ 77,750,000.00 (70.4%)  Construction = $ 28,290,000.00 (25.6%)  Miscellaneous = $ 1,902,975.00 (1.7%)  Annual O & M = $ 2,277,551.00

FINANCIAL SUMMARY  Debt (Bank) 70% = $77,348,583.00 @ 6% PA payable for 15 years.  Equity 30% = $ 33,149,393.00 @ 10% PA  15 years Annual Debt Payments = $ 7,964,024.00  Annual Cost (O&M) = $ 2,277,551.00  Annual Income = $ 24,232,079.00  Annual GHG Income = $ 850,742.00  Energy Rate (Non ‐ FIT) = $ 0.14/ Kwh  Inflation = 3%  7 Yrs ITH  Declining Balance Depreciation  25 Years Project Life

FINANCIAL SUMMARY  Year to Positive Cash flow = 2.3 Years  Simple Payback = 4.8 Years  Hurdle Rate = 6.8%  Pre ‐ Tax IRR = 44.1%  After ‐ Tax IRR = 43.7%  Discount Rate @ 6.8% NPV = $143,060,259.00  Discount Rate @ 20% NPV = $37,898,746.00

PROPOSED FINANCIAL STRUCTURE  Investor to arrange bank loan for 70% @ 6% PA Bank Financing payable in 15 years.  Investor’s Capital Investment is 30% @ 10% PA payable in 3 years.  After complete payment of Investor’s 30% capital, project shareholdings will take effect.  At the 4 th Year Operation: Project Shareholdings = 40% Investor / 60% Project Owner  Investor’s 40% Project Acquisition Payment + Owner’s Pre ‐ Development Expenses = $2,000,000.00  Investor / Project Owner Total Profit = $ 357,942,574.00  Investor / Project Owner Average Annual Profit: 1 ‐ 7 Years (ITH & Equity & Debt Payment) = $ 14,550,911.00 8 ‐ 15 Years (After ‐ Tax & Debt Payment) = $ 12,177,194.00 15 ‐ 25 Years (After ‐ Tax Only) = $ 19,181,804.00

RYANYX CGS CORPORATION THE END. THANK YOU!